A small company sold 1500 widgets this year at a price of $12 each. If the price increases at rate of $1.75 per year and the quantity sold increases at a rate of 200 widgets per year, at what rate will revenue increase?
A) $350/year
B) $5025/year
C) $225/year
D) $5375/year

Question

Quizplus · Accepted Answer

The revenue is the product of the price and the quantity sold. The price is increasing at a rate of $1.75 per year, and the quantity sold is increasing at a rate of 200 widgets per year. So, the revenue is increasing at a rate of $1.75 * 1500 + $12 * 200 = $5025 per year.

A Small Company Sold 1500 Widgets This Year at a Price