Question

A sales team estimates that the number of new phones they will sell is a function of the price that they set. They estimate that if they set the price at x dollars, they will sell f(x)=2160−9x phones. Therefore, the company's revenue is x⋅(2160−9x). Find the price x which will maximize the company's revenue.

Answer 1

Answer:

Price x = $120.

Step-by-step explanation:

R = x⋅(2160−9x)

R = 2160x - 9x^2

= -9(x^2 - 240x)

= - 9[ ( x - 120)^2 - 14400)

= -9(x - 120)^2 + 129,600

The maximum value is when x - 120 = 0  That is when x = 120.