Maximum Revenue Formula Math

This confirms our algebraic solution above.

Maximum revenue formula math. P is the price of the good or service at max demand. A sample sales revenue calculation. It only takes a minute to sign up. Get an answer for maximum profit given revenue and cost equations.

2 find the level of production that will maximize revenue. 3 suppose there is a fi xed cost of 174500 to set up the manufacture and a producing cost of 125 dollars per unit. Where r is maximum revenue. The formula for calculating the maximum revenue of an object is as follows.

Thanks for submitting this problem and glad to help. To calculate maximum revenue determine the revenue function and then find its maximum value. For a product based business the formula is revenue number of units sold x average price. Find the revenue function.

You can use formulas for sales and demand to predict the maximum revenue that a company can expect to make. The weekly revenue for a company is r 3p 60p 1060 were p is the price of the company s product. Mathematics stack exchange is a question and answer site for people studying math at any level and professionals in related fields. Write a formula where p equals price and q equals demand in the number of units.

Sales revenue 1 000 x 350 350 000. For example you could write something like p 500 1 50q. They find that their cost in dollars is c x 50 3x and their. Last year we sold 1 000 game consoles for 350 per piece.

To solve for a break even quantity set p x 0 and solve for x using factored form or the quadratic formula. For service based companies the formula is revenue number of customers x average price of services. The break even point occurs when the total revenue equals the total cost or in other words when the profit is zero. Why the sales.

Find the maximum revenue for this company. However if the price is 70 dollars the demand is 5000. Find the break even quantities. A small company produces and sells x products per week.

Max and min problems max and min problems can be solved using any of the forms of quadratic equation. Question from megan a student.