A travel agency will plan a tour for groups of size 53 or larger.If the group contains exactly 53 people,the price is $800 per person.However,each person's price is reduced by $10 for each additional person above the 53.If the travel agency incurs a price of $150 per person for the tour,what size group will give the agency the maximum profit?
A) 6
B) 91
C) 59
D) 70
E) 32

Question

​A travel agency will plan a tour for groups of size 53 or larger.If the group contains exactly 53 people,the price is $800 per person.However,each person's price is reduced by $10 for each additional person above the 53.If the travel agency incurs a price of $150 per person for the tour,what size group will give the agency the maximum profit?
A) ​6
B) ​91
C) ​59
D) ​70
E) ​32

Quizplus · Accepted Answer

The profit is maximized when the revenue is maximized and the cost is minimized. The revenue is maximized when the group size is 91, and the cost is minimized when the group size is 53. Therefore, the profit is maximized when the group size is 59.

​A Travel Agency Will Plan a Tour for Groups of Size

A Travel Agency Will Plan a Tour for Groups of Size