A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.

a. find the number of passengers that will maximize the revenue received from the flight.

b. find the maximum revenue.

Question

Olivia Taylor

Business

12 October, 17:17

A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.

a. find the number of passengers that will maximize the revenue received from the flight.

b. find the maximum revenue.

+3

Answers (1)

Know the Answer?

Philip Sanford · Answer 1

If x = number of passengers in excess of 84,

Revenue, R = (565-5x) (84+x) = 47460+565x-420x-5x^2 = 47460+145x-5x^2

(a) For maximum revenue, first derivative of revenue function is equal to 0.

That is,

dR/dx = 145-2*5x = 145-10x = 0 = > 145=10x = > x = 14.5 = 15 passengers

Maximum number of passengers for maximum revenue = 84+15 = 99 passengers

(b) Maximum revenue = (565-5*15) (99) = (565-75) (99) = $48,510

A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.a. find the number of passengers that will maximize the revenue received from the flight.b. find the maximum revenue.

A local club is arranging a charter flight to hawaii. the cost of the trip is $565 each for 84 passengers, with a refund of $5 per passenger for each passenger in excess of 84.

a. find the number of passengers that will maximize the revenue received from the flight.

b. find the maximum revenue.