A smoothie stand usually sells 150 smoothies per day at $4 each. a business student's research tells her that for every$0.10 decrease in the price, the stand will sell 5 more smoothies per day. Using calculus determine the price at which the smoothies should be sold to maximize revenue. Be very clear when defining your variable(s).
A smoothie stand usually sells 150 smoothies per day at $4 each. a business student's research tells her that for every$0.10 decrease in the price, the stand will sell 5 more smoothies per day. Using calculus determine the price at which the smoothies should be sold to maximize revenue. Be very clear when defining your variable(s).
Price of each smoothie = $(4 - 0.10x) Number of smoothies = (150 + 5x) Revenue = (150 + 5x)(4 - 0.10x) Now maximize Revenue using calculus. 3. Originally Posted by spencersin A smoothie stand usually sells 150 smoothies per day at$4 each. a business student's research tells her that for every $0.10 decrease in the price, the stand will sell 5 more smoothies per day. Using calculus determine the price at which the smoothies should be sold to maximize revenue. Be very clear when defining your variable(s). Revenue = (# of smoothies sold)*(price at which they are sold) Now, the revenue $r(x) = (150 + 5x)(4 - 0.1x)$ since for each$0.1 we take off the price of $4, we increase the number sold by 5 times that number. your goal is to maximize $r(x)$ 4. I found that R'(x) = 5-x So, x=5 <---critical number how can I get the price at which the smoothies should be sold to maximize revenue?? 5. Originally Posted by spencersin I found that R'(x) = 5-x So, x=5 <---critical number how can I get the price at which the smoothies should be sold to maximize revenue?? ok, is this a maximum point for R(x)? remember what price you want to sell at,$(4 - 0.1x)