As Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,700. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 13 contracts. This is down 5 contracts from the figure last year, when your company charged only $2,200 On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
As Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,700. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 13 contracts. This is down 5 contracts from the figure last year, when your company charged only $2,200
On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour.
Express Montevideo Productions' monthly profit as a function of the hourly development fee p.
P(p) =
Find the price it should charge to maximize the profit (in dollars per hour).
p = $
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