The management of Ditton Industries has determined that the daily marginal revenue function associated with selling x units of their deluxe toaster ovens is given by the following, where R '(x) is measured in dollars/unit.

Question

R '(x)=-0.1x-40

(a) Find the daily total revenue realized from the sale of 180 units of the toaster oven.

$ ?

(b) Find the additional revenue realized when the production (and sales) level is increased from 180 to 280 units.

$ ?

Answer 1

(a) Total revenue realized from the sale of 180 units of the toaster oven: $-72.00
(b) Additional revenue realized when the production (and sales) level is increased from 180 to 280 units: $-80.00