MPM2D1 / Name: ______
WORKSHEET – Maximum & Minimum Revenue Problems
1.Studies have shown that 500 people attend a high school basketball game when the admission price is $2.00. In the championship game admission prices will increase. For every 20¢ increase 20 fewer people will attend. What price will maximize receipts?
2.The Transit Commission’s single-fare price is 60¢ cash. On a typical day, approximately 240000 people take transit and pay the single-fare price. To reflect higher costs, single fare prices will be increased, but surveys have shown that every 5¢ increase in fare will reduce rider-ship by 5000 riders daily. What single-fare price will maximize income for the commission based on single fares?
3.Slacks incorporated sold 6000 pairs of slacks last month at an average price of $44 each. The store is going to increase prices in order to increase revenue. Sales forecasts indicated that sales will drop by 200 for every dollar increase in price. What price will maximize revenue?
4.An auto parts store currently sells 300 spark plug packages each week at a price of $6.40 each. To increase sales and reach more customers the parts outlet decides to reduce the price of the package, knowing that every 10¢ decrease in price will result in 5 more sales. What price will maximize total revenue?
5.Tri Electronics sells radios for $50 each. 40 radios are sold daily. a survey indicates that a price raise of $1 will cause the loss of one customer. How much should the company charge to maximize revenue?
6.A company selling cassette tape recorders for $80, sells 60 each day. A survey indicates that for each dollar the price is raised, one customer will be lost.
- How much should the company charge to maximize the revenue?
- The cost of making the recorders is $54 each. How much should the company charge to maximize profit?