Question

Optimal Chapter-Flight Fare

If exactly 180 people sign up for a charter flight, Leisure World Travel Agency charges $316/person. However, if more than 180 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person. Determine how many passengers will result in a maximum revenue for the travel agency. Hint: Let x denote the number of passengers above 180. Show that the revenue function R is given by

R(x) = (180 + x)(316 − x).

passengers

What is the maximum revenue?

$

What would be the fare per passenger in this case?

dollars per passenger

Answer 1