Ask Question
9 February, 14:54

A car rental agency rents 200 cars per day at a rate of 29 dollars per day. For each 1 dollar increase in the daily rate, 5 fewer cars are rented. At what rate should the cars be rented to produce the maximum income, and what is the maximum income? R

+4
Answers (1)
  1. 9 February, 15:16
    0
    Answer and Explanation:

    Given:

    Total car = 200

    Rate = $29

    Computation:

    Total increase in rate = a

    So, Total decrees in car = 5a

    Total income (y) = [200-5a][29+a]

    y = 5,800 + 200a - 145a - 5a²

    y = 5,800 + 55a - 5a²

    y' = dy / da [5,800 + 55a - 5a²]

    y' = - 10a + 55

    in which, y' = 0

    0 = - 10a + 55

    a = 5.5

    So, Maximum rate = $ [29+5.5]

    Maximum rate = $34.5

    maximum income = 5,800 + 55 (5.5) - 5 (5.5) ²

    maximum income = 5,800 + 302.5 - 151.25

    maximum income = $5951.25
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A car rental agency rents 200 cars per day at a rate of 29 dollars per day. For each 1 dollar increase in the daily rate, 5 fewer cars are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers