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# APPLICATION PROBLEMS - SALE REVENUE PROBLEMS

Sale managers normally want to increase revenue R by selling more. For example, a manager may know by experience that revenue R will increase or decrease according to the following mathematical linear model for a a sales price P and quantity sold Q of a certain commodity:
P=Po +-px [This represents a linear equation with positive or negative slope]
Q=Qo+-qx [This represents a linear equation with positive or negative slope]
In other words, "q" more(+) or less(-) units per month can be sold if the price is decreased(-)/increased(+) by \$"p" in multiples of 1, 2, ..or "x". The slopes "p" and "q" are different for different commodoties.
R=P*Q

Problem 1S (Sales Revenue Problem)
The owner of an apartment complex knows he can rent all 50 apartments when the monthly rent is \$400. He thinks that for each \$25 increase in the rent, he will loose two tenants. He would be happy with revenue of \$20,400 per month.
? Write an expression for the price P
? Write an expression for the number of apartments Q that can be rented a price P
? Write an equation that relates the revenue to the price and number of apartments.

Please see attachment (questions also in attachment)

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