The manufacturer of GRIPPER tires modeled its return to sales from television advertising expenditures in two regions, as follows:
Where and are the sales revenue in millions of dollars, and and are millions of dollars of expenditures for television advertising. How much money will be needed to maximize sales revenue in both districts? Round your answer to the nearest million dollars.
A) $16 million
B) $26 million
C) $9 million
D) $11 million
E) $12 million

Question

The manufacturer of GRIPPER tires modeled its return to sales from television advertising expenditures in two regions, as follows: ​   ​
Where  and  are the sales revenue in millions of dollars, and  and  are millions of dollars of expenditures for television advertising. How much money will be needed to maximize sales revenue in both districts? Round your answer to the nearest million dollars.
A) $16 million 
B) ​$26 million 
C) ​$9 million 
D) ​$11 million 
E) ​$12 million

Quizplus · Accepted Answer

To maximize sales revenue in both regions, we need to find the point where the total sales revenue is the highest. Looking at the table, we can see that the total sales revenue is highest when the advertising expenditure is $13 million in region 1 and $13 million in region 2. Therefore, the total advertising expenditure needed to maximize sales revenue in both districts is $13 million + $13 million = $26 million. The closest answer choice to this amount is B, so that is our answer.

The Manufacturer of GRIPPER Tires Modeled Its Return to Sales