Question

A small theater company currently has 200 subscribers who each pay $120 for a season ticket. The revenue from season-ticket subscriptions is $24,000. Market research indicates that for each $10 increase in the cost of a season ticket, the theater company will lose 10 subscribers. A model for the projected revenue R (in dollars) from season- ticket subscriptions is R (p) = (120 + 10p) (200 - 10p), where p is the number of $10 price increases. According to this model, is it possible for the theater company to generate $25,600 in revenue by increasing the price of a season ticket?​

Answer 1

A small theater company currently has 200 subscribers who each pay $120 for a season ticket. The revenue from season-ticket subscriptions is $24,000. Market research indicates that for each $10 increase in the cost of a season ticket, the theater company will lose 10 subscribers. A model for the projected revenue R (in dollars) from season- ticket subscriptions is R (p) = (120 + 10p) (200 - 10p), where p is the number of $10 price increases. According to this model, is it possible for the theater company to generate $25,600 in revenue