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Sergio [31]
2 years ago
11

A car rental agency rents 220 cars per day at a rate of 28 dollars per day. For each 1 dollar increase in the daily rate, 6 fewe

r cars are rented. At what rate should the cars be rented to produce the maximum revenue, and what is the maximum revenue
Business
1 answer:
9966 [12]2 years ago
3 0

The cars should be rented at $34 per day for a maximum income of $6268 per day.

If the daily rental is increased by $x

<u>Then </u>

Rental: R(x)=(28+x)dollars per car-day

Number of cars rented:  

N(x) = (220−6x) and Income: I(x) = (28+x) (220−6x) = 6,610 + 52x−5x^{2} dollars/day.

The maximum will be achieved when the derivative of I (x) is zero.

\frac{dI(x)}{dx} = 52−10x = 0

⇒ x = 5.2

For an even dollar rental amount, and increase of $5/day or $6/day will generate the same income.

So

$28+$5 = $33/day

or

$28+$6 = $34/day

would both be valid answers.

However, $34/day involves renting fewer cars and thus reduced expenses.

Using basic substitution and arithmetic

I(4) = $6,268

<h3>What is Maximum revenue ?</h3>

Maximum revenue is defined as the total maximum amount of revenue of product or service can yield at maximum demand and price.

To calculate maximum revenue, determine the revenue function and then find its maximum value. Write a formula where p equals price and q equals demand, in the number of units.

Learn more about Maximum revenue  on:

brainly.com/question/13780508

#SPJ4

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Murljashka [212]

Answer:

CReative department?

Explanation:

6 0
3 years ago
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Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2
viva [34]

Answer:

a. 863

Explanation:

Calculation for the order quantity

Order quantity = 75 x (10 + 2) + (1.64 x 8) - 50

Order quantity = (75 x 12) + (1.64 x 8) - 50

Order quantity= 900 + 13.12 - 50

Order quantity= 863.12

Order quantity = 863

Therefore the Order quantity will be 863

8 0
3 years ago
Managers who subscribe to ____________ believe that people are naturally lazy and uncooperative and must therefore be either pun
agasfer [191]

Manager who subscribe to Theory X believe that people are naturally lazy and uncooperative and therefore must either be rewarded or punished to be made productive to achieve the target.

Theory X and theory y are two theories of human motivation and management created by Douglas McGregor based on the works of Abraham Maslow and demonstrate opposing models of workforce motivation.  Theory X works on the assumption that the typical worker is unambitious, selfish, uncooperative and avoids responsibility, unintelligent, lazy, and that their main motivation is a steady income.

Managers who employ these assumptions tend to use a reward/punishment system as a motivator and expect increased efficiency with a hands-on approach. Under this type of management, individuals are more likely to directly receive a negative or positive outcome and are considered to be most effective in a workforce with low-performance motivation. A workplace that involves assembly lines or manual labor is ideal for this managerial style.  

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3 0
1 year ago
The minimum wage in 2008 was $6.55 cents until july 2008 when it was raised to $7.25. if the minimum wage in june was below the
eimsori [14]
<span>The answer in the blank is that employment of low-skilled workers increased in July. This is because the rate of the minimum wage increased by July compared to that of June. So there will be more employment process due to the increase of the salary, because more skilled workers wants to grab the opportunity of the increased salary.</span>
7 0
3 years ago
Salt Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $220
e-lub [12.9K]

Answer:

12%

Explanation:

Annual net income:

= Increase in annual revenue - Increase in annual costs

= $220,000 - $160,000

= $60,000

Average investment:

= (Initial investment + Salvage value at the end) ÷ 2

= (980,000 + 20,000) ÷ 2

= $500,000

Annual rate of return:

= (Annual net income ÷ Average investment) × 100

= ($60,000 ÷ $500,000) × 100

= 12%

5 0
3 years ago
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