SELLING PEANUTS-samuel operates a small peanut stand. He estimates that he can sell 600 bags of peanuts per day if he changes 50 cents for each bag. He determines that can sell 20 more bags for each 1 cent reduction in price.

Question

A. What would his revenue be if he changed 48 cent per bag?
B. What should he charge in order to have receipts of $315?

Answer 1

Since revenue = quantity*price, after x 1-cent reductions, the revenue is

r(x) = (600+20x)(0.50-0.01x)

Now use that to answer the questions.