Answer:
Monthly revenue = R(x) = (11,200 - 400x) * (7 + x)
Step-by-step explanation:
Monthly revenue = Number of members * Monthly fee ......... (1)
Where;
Number of members = 11,200
Monthly fee = $7
For each $1 monthly increase in membership fee, we have
For 1 month, one dollar the decrease = 400 * 1 = 400
For 2 months, 2 dollar increase will lead to decrease of 400* 2 = 800 members
Therefore, for x months
Innrease in membeship fee or price increase = 7 + x
Decrease in the numbers of members = 400x
Substitute the values into equation (1), we have:
Monthly revenue = R(x) = (11,200 - 400x) * (7 + x)
