it costs a bus company $225 to run a minibus on a ski trip plus $30 per. passenger. The bus has seating capacity for 22 people. The company charges $60 per fare if the bus is full. For each empty seat, the company has to increase the ticket price by $5. Explain how to determine the number of empty seats that the bus should run in order to maximize profit.
Can someone help me with this question??? Please and thankyou!~
Can someone help me with this question??? Please and thankyou!~
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Cost= C= 225+30x , Where x = number of passengers:
x = 22-n Where n= number of empty seats
C= 225+30(22-n)
C= 885-30n
Now for revenue, a full bus is 60 dollars for each of 22 passengers= 60(22)
But with n empty seats, number of passengers is 22-n, and price is 60+ 5n
Revenue = R= (60+5n)(22-n)
R= 1320+ 50n -5n^2
Profit= P= R- C = (1320+50n -5n^2 ) - (885-30n)
P= -5n^2 + 80n + 435
Notice this is a parabola that opens down, so the maximum occurs at the vertex.
n= -b/(2a)= -80/(2*-5)= 8
There should be 8 empty seats to maximize profit.
Hoping this helps!
x = 22-n Where n= number of empty seats
C= 225+30(22-n)
C= 885-30n
Now for revenue, a full bus is 60 dollars for each of 22 passengers= 60(22)
But with n empty seats, number of passengers is 22-n, and price is 60+ 5n
Revenue = R= (60+5n)(22-n)
R= 1320+ 50n -5n^2
Profit= P= R- C = (1320+50n -5n^2 ) - (885-30n)
P= -5n^2 + 80n + 435
Notice this is a parabola that opens down, so the maximum occurs at the vertex.
n= -b/(2a)= -80/(2*-5)= 8
There should be 8 empty seats to maximize profit.
Hoping this helps!