Daniel produces his own brand of major league quality baseballs. One baseball alone is priced at $7.00.
Question:
Daniel produces his own brand of major league quality baseballs. One baseball alone is priced at $7.00. However, he overs a discount for those who buy more than one baseball. He reduces the price by a nickel for every baseball in an order. For example, if someone orders 10 baseballs, each baseball will cost 7 0.05 · 10 = $6.50
(a) Use a formula to express the price per baseball, p(n), when a team orders n baseballs.
(b) Use a formula to express Daniel’s revenue, R(n), when a team orders n baseballs.
(c) Suppose Daniel does not allow anyone to purchase more than 100 baseballs in one order. Sketch and label a graph of R(n) for 2 < n < 100.
(d) Major league teams use an average of 65 baseballs per game. What is Daniel’s revenue for an order of 65 baseballs?
(e) What is the maximum possible revenue for one order?
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman