What number of rooms filled produces the maximum revenue?

Question

The total revenue for Fred's estates LLC is given as the function R(x)=400x-0.2x^2 ,where x is the number of rooms filled. What number of rooms filled produces the maximum revenue?

Answer 1

R(x) = -0.2x² + 400x

 

The maximum occurs at -b/2a.

 

-400 / 2(-0.2)

-400 / -0.4

1000

 

One thousand rooms produces the maximum revenue.