VO 13) Please show all steps/work Maximum Revenue (optimizing functions with several variables): An airline flying to a Midwest destination can sell 20 coach-class tickets per day
VO 13) Please show all steps/work
Maximum Revenue (optimizing functions with several variables):
An airline flying to a Midwest destination can sell 20 coach-class tickets per day at a price of $250 and six business-class tickets per day at a price of $750. It finds that for each $10 decrease in the price of the coach ticket, it will sell four more per day, and for each $50 decrease in the business-class price, it will sell two more per day.
a) What prices should the airline charge for the coach- and business-class tickets to maximize
revenue?
b) How many of each type will be sold at these price?
c) What is the daily maximum revenue?
[Hint: Let x be the number of $10 price decreases for coach tickets and y be the number of $50 price
decreases for business-class tickets.]
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