The sticker warehouse sells rolls of stickers for $4.00 each. the average custiomer buys six rolls of stickers. the owner finds that for every $0.25 decrease in price, the average customer buys an additional roll.

a) with how many price reductions will the revenue per customer be $30?

b) what is the maximum predicted sales revenue per customer? with how many price reductions will this occur?

Question

Mathematics

Aron Mathews

11 September, 16:11

The sticker warehouse sells rolls of stickers for $4.00 each. the average custiomer buys six rolls of stickers. the owner finds that for every $0.25 decrease in price, the average customer buys an additional roll.

a) with how many price reductions will the revenue per customer be $30?

b) what is the maximum predicted sales revenue per customer? with how many price reductions will this occur?

+4

Answers (1)

Know the Answer?

Sidney Donaldson · Answer 1

A) 4 price reductions. B) The maximum predicted sales revenue per customer is $30.25 which occurs with 5 price reductions. As a matter of interest, the $30 revenue per customer also occurs with 6 price reductions but this happens after reaching the maximum predicted revenue per customer of $30.25.