<span>Given that Tamara's annual salary is $48,000 means that his monthly salary is $48,000 / 12 = $4,000. For Tamara to make $6,000 this month, she needs to make an additional $2,000 from commissions in addition to her salary. Given that she earns 4% commision on all sales, let the sale she needs to make to get $2,000 be S, then 4 / 100 x S = 2000 this gives 0.04S = 2000 giving that S = 2000 / 0.04 = 50,000. Therefore, Tamara needs to make a sales of $50,000 to be able to earn $6,000 this month.</span>
The price that will maximize profit is $ 5.50.
Since an auditorium has seats for 1200 people, and for the past several days, the auditorium has been filled to capacity for each show, and tickets currently cost $ 5.00 and the owner wants to increase the ticket prices, and he estimates that for each $ 0.50 increase in price, 100 fewer people will attend, to determine which is the price that will maximize profit, the following calculation must be made:
- 1200 x 5 = 6000
- 1100 x 5.5 = 6050
- 1000 x 6 = 6000
Therefore, the price that will maximize profit is $ 5.50.
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