Question

A cell phone company estimates that by charging x dollars each for a certain cell phone, they can sell 8-x cell phones per day. Use the quadratic function to find the revenue when the selling price of each cell phone is x. Find the selling price that will give them the maximum revenue (in dollars) and then find the amount of the maximum revenue (in dollars)

Answer 1

The selling price of phone that will give them the maximum revenue (in dollars) = 4 dollars

The amount of the maximum revenue (in dollars) = 16 dollars

Explanation:

Total number of phone sold = 8-X

Total price of each phone is X dollars

Total price of all sold mobile phones is

X * (8-X) = X^2 -8X

For getting maximum revenue, we will differentiate the above equation -

d/dx(X^2 -8X)= 0

2X -8 = 0

X = 4 dollars

Maximum revenue

4 * (8-4) = 16 dollars