Question

Luci Lulu opened a cookie store in the mall. She found that the relationship between the price of a cookie, p, and the number of cookies sold, x, is given by the linear relationship x = −2000 p + 4000 . Find the maximum revenue Luci can make selling cookies in one day. Find the price she should sell the cookies to make the maximum revenue

Answer 1

The maximum revenue Luci Lulu can make selling cookies in one day is $2,000.

The price Luci Lulu should sell the cookies to make the maximum revenue is $1.

Explanation:

From the question, we have:

x = −2000p + 4000 ..................... (1)

Where;

x = number of cookies sold

p = price of a cookie, p, and the

Revenue function (R) can therefore be obtained as follows:

R = px ……………………….. (2)

If we substitute equation (1) into (2), we will have:

R = p(−2000p + 4000)

R = −2000p^2 + 4000p ……………… (3)

Differentiating equation (3) with respect to p and set it equal to zero, we have:

−4000p + 4000 = 0

Solving for p, we have:

4000 = 4000p

p = 4000 / 4000

p = 1

Therefore, this implies the price Luci Lulu should sell the cookies to make the maximum revenue is $1.

Substituting p = 1 into equation (3), we have:

R = (−2000 * 1^2) + (4000 * 1)

R = (−2000 * 1) + (4000 * 1)

R = −2000 + 4000

R = 2000

This implies that the maximum revenue Luci Lulu can make selling cookies in one day is $2,000.