Math Problem Statement

Amit sells pakodas in boxes of different sizes containing different numbers of pakodas. The pakodas are priced at Rs. 3 per pakoda up to 300 pakodas. For every additional 25 pakodas, the price of the whole lot goes down by 10 paise per pakoda. What should be the number of pakodas in the box that would maximize his revenue

Solution

To determine the number of pakodas that Amit should include in a box to maximize his revenue, we need to analyze how the price per pakoda decreases as the number of pakodas increases.

Key Details

  • Up to 300 pakodas: Price per pakoda = Rs. 3
  • For every additional 25 pakodas beyond 300, the price of the entire lot decreases by Rs. 0.10 (10 paise) per pakoda.

Let:

  • xx represent the number of pakodas sold in the box.
  • p(x)p(x) represent the price per pakoda.

Setup

  1. Price Function:
    For the first 300 pakodas, the price per pakoda remains Rs. 3. After 300 pakodas, for every 25 pakodas, the price per pakoda decreases by 10 paise. Thus, the price function for x300x \geq 300 can be written as: p(x)=30.10×x30025p(x) = 3 - 0.10 \times \frac{x - 300}{25} Simplifying: p(x)=30.004(x300)p(x) = 3 - 0.004(x - 300) This gives us the price per pakoda for x300x \geq 300.

  2. Revenue Function:
    Revenue, R(x)R(x), is calculated as: R(x)=xp(x)R(x) = x \cdot p(x) Substituting the price function: R(x)=x(30.004(x300))R(x) = x \left(3 - 0.004(x - 300)\right) Expand and simplify: R(x)=x(30.004x+1.2)R(x) = x \cdot \left(3 - 0.004x + 1.2\right) R(x)=x(4.20.004x)R(x) = x \cdot \left(4.2 - 0.004x\right) R(x)=4.2x0.004x2R(x) = 4.2x - 0.004x^2

  3. Maximization:
    To find the number of pakodas that maximizes the revenue, we need to differentiate R(x)R(x) with respect to xx, set it equal to zero, and solve for xx.

    The first derivative of the revenue function is: dRdx=4.20.008x\frac{dR}{dx} = 4.2 - 0.008x Set dRdx=0\frac{dR}{dx} = 0: 4.20.008x=04.2 - 0.008x = 0 Solving for xx: 0.008x=4.20.008x = 4.2 x=4.20.008=525x = \frac{4.2}{0.008} = 525

Conclusion

Amit should include 525 pakodas in the box to maximize his revenue.


Would you like further clarification or details?

Here are five related questions to expand your understanding:

  1. How would the total revenue change if Amit sells only 300 pakodas?
  2. What happens to the revenue if the price drop increases to 20 paise per 25 pakodas?
  3. How does the revenue function behave for more than 600 pakodas?
  4. Can you derive the break-even point where Amit's revenue stops increasing?
  5. How would adding a fixed cost per box affect the optimal number of pakodas?

Tip: Revenue maximization often involves balancing volume sold with price per unit; understanding this trade-off is crucial in real-world pricing decisions.

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Math Problem Analysis

Mathematical Concepts

Optimization
Derivatives
Revenue Maximization

Formulas

Price function: p(x) = 3 - 0.004(x - 300)
Revenue function: R(x) = 4.2x - 0.004x^2

Theorems

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Suitable Grade Level

Advanced High School