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If exactly 194 people sign up for a charter flight, Leisure World Travel Agency charges $308/person. However, if more than 194 people sign up for
If exactly 194 people sign up for a charter flight, Leisure World Travel Agency charges $308/person. However, if more than 194 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person. Determine how many passengers will result in a maximum revenue for the travel agency. Hint: Let x denote the number of passengers above 194. Show that the revenue function R is given by R(x) = (194 x)(308 x). What is the maximum revenue? What would be the fare per passenger in this case?
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