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asambeis [7]
3 years ago
8

When a swimming park owner charges $4.00 for admission, there is an average attendance of 100 people. For every $0.20 increase i

n the admission price, there is a loss of 2 customers from the average number. What admission price should be charged in order to maximize revenue $?
Business
1 answer:
maks197457 [2]3 years ago
7 0

Answer:

$490

Explanation:

Let xR be the revenue function

xR = (4 + 0.2(x))(100 - 2x) = 400 + 12x - 2x²/5

Maximum revenue occurs when xR = 0:

xR = 12 - 4x/5 = 0

x = 15

Admission price = 4 + (0.2*15) = 4 + 3 = $7

Max revenue = $7 * (100 - (15*2) = 7 *70  = $490

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Therefore the amount of cash that Sioux should expect to collect during the month of April is $358,000

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