At HD Sport and Fitness gym, analysis shows that, as the demand of the gym, the number of members is 86 when annual membership fee is $25 per member and the number of members is 84 when annual membership fee is $33 per member. As the operator of the gym, you found out that number of members (q) and membership fee (p) have a linear relationship. A) At what membership price, p , is the revenue maximized? p= Round your answer to 2 decimal places. B) What is the maximum annual revenue? R=. Round your answer to 2 decimal places.

Question

At HD Sport and Fitness gym, analysis shows that, as the demand of the gym, the number of members is 86 when annual membership fee is $25 per member and the number of members is 84 when annual membership fee is $33 per member. As the operator of the gym, you found out that number of members (q) and membership fee (p) have a linear relationship.  A) At what membership price, p , is the revenue maximized?  p=  Round your answer to 2 decimal places.  B) What is the maximum annual revenue?  R=.  Round your answer to 2 decimal places.

breisgaoyz · Accepted Answer

We find for (a)  R(p)=−52+240p  −52⋅(86)2+240p  −52⋅7396+240  We find for (b)  R=(q)=25⋅q2+96p  =25⋅(84)2+96q  25⋅7056+96q

At HD Sport and Fitness gym, analysis shows that, as the demand of the gym,...

Answered question

Answer & Explanation