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Price and Revenue

Part of the Quadratics & Complex Numbers section of Coddy's Algebra 2 journey. Lesson 42 of 48.

A juice stall sells 120−10p120-10p cups a day when a cup costs p dollars. Revenue is the money taken: the price times the number sold. So R(p)=p(120−10p)R\left(p\right) = p\left(120-10p\right).

Raising the price is a trade. Each cup earns more, but fewer cups sell. Charge nothing and you earn nothing. Charge 12 dollars and you sell none. Those are the zeros of R, p = 0 and p = 12.

Multiplied out, R(p)=−10p2+120pR\left(p\right) = -10{p}^{2}+120p is a parabola opening down, so the best price is its vertex, halfway between the zeros: 6 dollars. Then R(6)=6(60)R\left(6\right) = 6\left(60\right), which is 360 dollars a day.

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Challenge

A shop sells 200−25p200-25p phone cases a week at a price of p dollars each, so its weekly revenue is R(p)=p(200−25p)R\left(p\right) = p\left(200-25p\right) dollars. Find the most revenue R it can take. On the blank board, first write the best price as a p = ... line, then the revenue as an R = ... line.

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This lesson includes a short quiz. Start the lesson to answer it and track your progress.

quiz iconTest yourself

This lesson includes a short quiz. Start the lesson to answer it and track your progress.

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