A luxury hotel has 30 high end bungalows on the shores of the Mediterranean that it rents. During the Cannes Film Festival, the management knows that if they rent only 20 of the bungalows, they can charge $600 per night. However, for every bungalow over 20 that they rent, they must lower the price per night by $25. How many bungalows should the hotel rent in order to maximize revenue.

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A luxury hotel has 30 high end bungalows on the shores of the
Mediterranean that it rents. During the Cannes Film Festival, the
management knows that if they rent only 20 of the bungalows, they
can charge $600 per night. However, for every bungalow over 20 that
they rent, they must lower the price per night by $25. How many
bungalows should the hotel rent in order to maximize revenue.
Transcribed Image Text:A luxury hotel has 30 high end bungalows on the shores of the Mediterranean that it rents. During the Cannes Film Festival, the management knows that if they rent only 20 of the bungalows, they can charge $600 per night. However, for every bungalow over 20 that they rent, they must lower the price per night by $25. How many bungalows should the hotel rent in order to maximize revenue.
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