Dimples the Clown has been charging $260 to perform at parties. He thinks that each raise of $80 in the charge

dimples-the-clown

#1

Dimples the Clown has been charging $260 to perform at parties. He thinks that each raise of $80 in the charge for a party will result in one fewer booking per month. Dimples performs at 20 parties each month at his current price. How much should he charge to maximize his monthly revenue?

Answer:

r = (260 + 80 x) (20 - x) = 5200 + 1340 x - 80 x²

xmax = -1340 / (2 * -80) = 67/8

67/8 rounds to 8

charge is … 260 + (8 * 80)