Math Problem Statement

Frannie can sell 500 custom face masks each month at a price of $14. For every $1 increase in price, she sells 10 fewer face masks.

If x represents the number of $1 increases, and Revenue = Price * Quantity, then Frannie’s revenue can be calculated as: R(x) = (14 + 1x)(500 – 10x) = 7000 + 360x – 10x2

What price should she be charging for the masks to maximize her revenue?

Solution

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Equations
Revenue Maximization

Formulas

Revenue function: R(x) = (14 + x)(500 - 10x)
Quadratic vertex formula: x = -b/2a

Theorems

Vertex Theorem for Parabolas

Suitable Grade Level

Grades 9-12