High School

3. Mountaineer Products Incorporated manufactures mountain-bike

accessories. It is considering making a new type of reflector for night

biking. The expense and revenue functions are E = -450p + 90,000

and R=-185p2 + 9,000p.

a. Graph the two functions and find the price at the two breakeven points.

b. Determine the revenue

and expense amounts for

each of the breakeven

Points

c. What price will yield

the maximum revenue?

What is the max revenue

3.5 Review Worksheet

at that price?

-50

120000-

100000-

80000-

60000-

40000-

-20000-

0

Masa

50

100

150

20

3 Mountaineer Products Incorporated manufactures mountain bike accessories It is considering making a new type of reflector for night biking The expense and revenue functions

Answer :

a. The price at the two break-even points is 92,297.30 and 103,500.00

b. The revenue and expenses amount at the break-even point is 16.21 and 30.00

c. The price that will yield the maximum revenue is 16.32 and the maximum revenue is 109,459.46

How to interpret the graph

The break-even point is the point where the graphs intersect. In the graph, this is the points B and C

The price of the break even points is the x-values of the points B and C while the y values is the the Expense and Revenue

With similar knowledge, we can find the maiximum revenue as the vertex of the curve. The x-values and y-valeus still has same meaning as earlier defined

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