Section 4.4: Maximizing Revenue
Consider the following problem:
A bookstore sells 96 calculus textbooks per month at $120 each. The owners estimate that for each $10 increase in price, they will sell 3 fewer calculus textbooks per month.
Let x be the increments of $10 increase in price.
Which of the following is the new revenue function R(x) with the new price?
Recall that R = price * sales.
OR (x = 120, 96):
R(x) = (120 - x) * (96 - 3x)
R = 120 - x * 96 - 3x