The total revenue for Fred's Estates LLC is given as the function R (x) = 200x-0.4x2, where x is the number of rooms booked. What number of rooms booked produces the maximum revenue?

250 rooms gives R (250) = 25000

Step-by-step explanation:

R (x) = 200x-0.4x^2

Set derivative to zero to find min or max.

dR (x) / dx = 200 - 0.8x

200 - 0.8x = 0

x = 250

R (250) = 25000

R (249) = R (251) = 24999.6

Solution is a maximum.