Question
An automobile dealer can sell 8 sedans per day at a price of $20,000 and 4 SUVs (sport utility vehicles) per day at a price
An automobile dealer can sell 8 sedans per day at a price of $20,000 and 4 SUVs (sport utility vehicles) per day at a price of $25,000. She estimates that for each $200 decrease in price of the sedans she can sell two more per day, and for each $600 decrease in price for the SUVs she can sell one more. If each sedan costs her $16,800 and each SUV costs her $19,000, and fixed costs are $1200 per day, what price should she charge for the sedans and the SUVs to maximize profit? [Hint: Let x be the number of $200 price decreases for sedans and y be the number of $600 price decreases for SUVs, and use the methods in Example 1 and Example 2 for each type of car.]
price of sedans | $ | |
price of SUVs | $ |
How many of each type will she sell at these prices?
sedans sold | ||
SUVs sold |
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