Spider Industries is a U.S.-based company that test-marketed an electronic cobweb destroyer in Japan. The company's revenue, R, is a function of the number of destroyers sold, x, using the following formula R = 160x -0.2x^2.

Question

How many destroyers must the company sell to maximize its revenue?

75, 400, or 40.

Answer 1

At maximum revenue, dR/dx = 0

That means 160 - 0.4x = 0

Solve for x.