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Math Help - Grade 11 word problem? (Quadratic equations) #2

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    Grade 11 word problem? (Quadratic equations) #2

    Lemon Motors has been selling an average of 60 new cars per month at $800 over the factory price. They are considering an increase in this markup. A marketing survey indicates that for every $20 increase, they will sell one less car each month. What should their new markup be to maximize income?

    I know I have to complete the square to find the maximum, but I just can't think of an equation to describe the situation.
    Last edited by mr fantastic; November 5th 2010 at 09:05 PM. Reason: Title.
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    Quote Originally Posted by Sorena View Post
    Lemon Motors has been selling an average of 60 new cars per month at $800 over the factory price. They are considering an increase in this markup. A marketing survey indicates that for every $20 increase, they will sell one less car each month. What should their new markup be to maximize income?

    I know I have to complete the square to find the maximum, but I just can't think of an equation to describe the situation.
    let x = number of $20 price increases ...

    monthly revenue = (number of cars sold)(price)

    R(x) = (60 - x)(800 + 20x)
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    the answer is 1000$ but i dont get that.
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    Quote Originally Posted by Sorena View Post
    the answer is 1000$ but i dont get that.
    I agree that the price of the car should be $1000 to maximize revenue.

    what did you "get" and how did you arrive at that value?
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