Question

pAn office building owner agrees to buy a minimum of 270 chairs and up to 440 chairs from a supplier. The price will be $85 per chair if only 270 chairs are bought, but will be discounted by $0.2 per chair (on the entire order) for every chair ordered in addition to the minimum. Answer the questions below, rounding your answers to the nearest whole dollar. a) What is the largest revenue the supplier can make under this deal

Answer 1

Answer:

The largest revenue the supplier can make under this deal is $24,151.2

Explanation:

Working file has been attached to help understand how the answer was derived. Some points to note in the sheet are:

1. The sheet represents the following columns which are S. No., Chairs, Price, Total Revenue and difference in each revenue.
2. As the no. of chairs rises the price is dropping by $0.2 in the entire order.
3. However, at first this increase in order of chairs is beneficial even with the drop in the price of entire order.
4. At the point, where chairs ordered are 348 and price is $69.4 the revenue is at its largest which is $24,151.2.
5. After this point the increase in the no. of chairs is only decreasing the overall total revenue of the supplier.

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