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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.

Awith how many price reductions will the revenue per customer be $30?
Bwhat is the maximum predicted sales revenue per customer? with how many price reductions will this occur?

Verified Answer :

syed514

A) 4 price reductions.

BThe 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.


Answer:

The sticker warehouse sells rolls of stickers for $4.00 each.

The average customer buys six rolls of stickers.

The owner finds that for every $0.25 decrease in price , the average customer buys an additional roll.

A:

We can find this by decreasing the price by $0.25, then multiply the number of rolls by the price, till we get $30.

\(6\times4=24\)

\(7\times3.75=26.25\)

\(8\times3.50=28\)

\(9\times3.25=29.25\)

\(10\times3=30\)

We can see that there will be 4 price reductions.

B:

\(11\times2.75 =30.25\)

\(12\times2.50 =30\)

Here we can see that the sale revenue per customer is going down, so the answer is the highest value before this, which is $30.25. And there will be 6  reductions.

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