A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.

a. find the number of passengers that will maximize the revenue received from the flight.

b. find the maximum revenue.

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Business

Alexis Dickson

15 May, 04:05

A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.

a. find the number of passengers that will maximize the revenue received from the flight.

b. find the maximum revenue.

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Answers (1)

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Demetrius Mercado · Answer 1

If x = number of passengers in excess of 84,

Revenue, R = (565-5x) (84+x) = 47460+565x-420x-5x^2 = 47460+145x-5x^2

(a) For maximum revenue, first derivative of revenue function is equal to 0.

That is,

dR/dx = 145-2*5x = 145-10x = 0 = > 145=10x = > x = 14.5 = 15 passengers

Maximum number of passengers for maximum revenue = 84+15 = 99 passengers

(b) Maximum revenue = (565-5*15) (99) = (565-75) (99) = $48,510

A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.a. find the number of passengers that will maximize the revenue received from the flight.b. find the maximum revenue.

A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.

a. find the number of passengers that will maximize the revenue received from the flight.

b. find the maximum revenue.