Determine the total revenue with the new toll. Therefore, the new revenue will be:
A toll bridge carries 6,000 veh/day. The current toll is $3.50/vehicle. Studies have shown that for each increase in toll of 50 cents, the traffic volume will decrease by 500 veh/day. It is desired to increase the toll to a point where revenue will be maximized.
What will be an ideal response?
R = V × T
R = 4750 × (350 + 125)
R = 4750 × 475
R = 2,256,250 cents
R = $22,562.50
The total revenue to be generated with the new toll will be $22,562.50 per day.
Therefore, the increase in revenue would be:
Rnew – Rold = $22,562.50 - $21,000 = $1,562.50
You might also like to view...
To enter the mixed number 1 ¾ within a spreadsheet formula, you would enter:
A. 1+3/4 B. (1 3/4) C. 2 ? 3/4 D. 1 3/4
The letter "O" as assigned to tool steels designates:
A) Steels that were made from selected ores B) Ostenitic steels C) Over stressed steel D) Oil hardening steels
Which type of CV joint transfers energy using six balls enclosed in cages to allow movement?
A) Tripod B) Cardan C) Rzeppa D) None of these
Modulating controls are used to ____.
A. start motors B. stop motors C. vary the speed of the motor D. stop the flow of a liquid