If exactly 400 people sign up for a charter flight, Leisure World Travel Agency charges $700/person. However, if more than 400 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person.
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Determine how many passengers will result in a maximum revenue for the travel agency. What is the maximum revenue? What would be the fare per passenger in this case?
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Hint: Let x denote the number of passengers above 400. Show that the revenue function R is given by R(x) = (400 + x)(700 - x).
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A. 550; $301,500; $550
B. 550; $302,500; $550
C. 500; $301,500; $500
D. 500; $302,500; $500
Answer: B
Mathematics
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