canada's wonderland assigment

Question

Your manager found out that you took grade 11 math this year and asked for your help in maximizing the profits in the Funnel Cake sales. Funnel Cakes cost $12. In one hour, an average of 60 funnel cakes are sold. For every dollar increase in price, there will be 3 fewer funnel cakes sold.  

Determine the selling price that will maximize the revenue, and what is the maximum revenue. (4 marks)

Answer 1

$12 60 sold

$11 63 sold

$0 96 given away

q = 96-3p

R=pq= 96p-3p^2

R' = 96-6p=0

p=$16 = revenue maximizing price

max Rev = 96x16 - 3(16^2) = $768