Question

A pen drive manufacturing company charges Rs 6,000 per unit for an order of 50 pen drives or less. The charge is reduced by Rs 75 per pen drive for each order in exce ss of 50. Find the largest size order, the company should allow so as receiving maximum revenue.


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Answer 1

Answer:

9000

Step-by-step explanation:

Answer 2

Answer:

The charge is reduced by 75 per pen drive for each order in excess of 50. Find the largest size order,

the company should allow so as to receive maximum revenue.

Solution.

Let ‘x’ units of pen drives be the total size of order, so that x > 50 to avail the said

deduction. Then, revenue function is

( 6000-75(x-50)).X

= 9750x-x^2

2

(R x 6000 75 x 50 x 9750x 75x

)

R’(x) = 9750 – 150x,

and for critical points

R’(x) = 0 x = 65

Also, R”(x) = –150, R”(65) = –150 < 0, the revenue is maximum, if 65 pen drives are ordered.