Question

Interns,

Mr. Howell, the prestigious founder and owner of our company would like you to perform an analysis on the company’s weekly revenues. He is requiring that the current weekly marginal revenue be at least $5,000 per week and if it is not currently at that level how fast should sales be changing to reach the target marginal revenue level. The most current information regarding weekly revenues can be found in Mr. Howell’s email below.

To be solved using derivatives.

“Mr. Kleppin,

It has come to my attention that our weekly marginal revenues may not be at the minimum level of $5,000 per week as I required. According to the sales report, we are currently selling 1,000 DVD’s per week and sales are currently rising by 200 DVD’s a week (gotta love the Marvel Universe! Customers can’t get enough!). They also inform me that our current selling price is $20 and that the price is dropping by $1 per week to encourage more sales. I would like you, Mr. Kleppin, to give the interns a chance to earn one of the 10 available positions at the end of their internship by giving them the opportunity to do the analysis. Again, I need to know if we are at the minimum level of $5,000 per week in marginal revenue, and if not, at what level should our sales per week be at so as to achieve the minimum marginal revenue level.”

Answer 1