This question is based on a standard modeling problem in business. The unit cost of a item (or drink or chemical) affects how much of the thing is sold. The revenue is the amount of money raised from sales. Hence, raising price should drop sales, but that may result in more revenue or less depending on whether the increased price per sale
Assume that a salesman predicts the sales for a particular liquid to be S = 750 – 42p , where p is the price per gallon set by the company. Suppose the company wants to sell at least 300 gallons in a month. To the nearest cent, what should the price be?
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