a kayak rental shop rents 28 kayaks per week when it charges $25 per day. For each $5 increase in price, the shop loses four kayak rentals per week. How much should the kayak rental shop charge to maximize weekly revenue? What is the maximum weekly revenue?
Answers
If a kayak rental shop rents 28 kayaks per week when it charges $25 per day. For each $5 increase in price, the shop loses four kayak rentals per week. 720 is the maximum weekly revenue
What is Equation?Two or more expressions with an Equal sign is called as Equation.
It is given that a kayak rental shop rents 28 kayaks per week when it charges $25 per day
For each $5 increase in price, the shop loses four kayak rentals per week. we need to find How much should the kayak rental shop charge to maximize weekly revenue
R(x)=(25+5x)(28-4x)
=5(5+x)4(7-x)
=20(5+x)(7-x)
=-20(5+x)(x-7)
when x=1 it is maximum
Price when x =1 is 25+5(1)=30
To calculate maximize revenue
R(1)=(25+5)(28-4)
=30(24)
=720
Hence the maximum weekly revenue is $720.
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