Education.com
Try
Brainzy
Try
Plus

Revenue Practice Problems

based on 1 rating
By — McGraw-Hill Professional
Updated on Sep 27, 2011

Revenue Practice Problems

Set 1: Introductino to Revenue Word Problems

To review business applications of quadratic equations, go to Revenue Help

Practice

Let x represent the number of increases/decreases in the price.

  1. 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 lose two tenants.

    P = _____________

    Q = _____________

    R = _____________

  2. A grocery store sells 4000 gallons of milk per week when the price is $2.80 per gallon. Customer research indicates that for each $0.10 decrease in the price, 200 more gallons of milk will be sold.

    P = _____________

    Q = _____________

    R = _____________

  3. A movie theater’s concession stand sells an average of 500 buckets of popcorn each weekend when the price is $4 per bucket. The manager knows from experience that for every $0.05 decrease in the price, 20 more buckets of popcorn will be sold each weekend.

    P = _____________

    Q = _____________

    R = _____________

  4. An automobile repair shop performs 40 oil changes per day when the price is $30. Industry research indicates that the shop will lose 5 customers for each $2 increase in the price.

    P = _____________

    Q = _____________

    R = _____________

  5. A fast food restaurant sells an average of 250 orders of onion rings each week when the price is $1.50 per order. The manager believes that for each $0.05 decrease in the price, 10 more orders will be sold.

    P = _____________

    Q = _____________

    R = _____________

  6. A shoe store sells a certain athletic shoe for $40 per pair. The store averages sales of 80 pairs each week. The store owner’s past experience leads him to believe that for each $2 increase in the price of the shoe, one less pair would be sold each week.

    P = _____________

    Q = _____________

    R = _____________

Solutions

  1. P = 400 + 25 x

    Q = 50 – 2 x

    R = (400 + 25 x )(50 – 2 x )

  2. P = 2.80 – 0.10 x

    Q = 4000 + 200 x

    R = (2.80 – 0.10 x )(4000 + 200 x )

  3. P = 4 – 0.05 x

    Q = 500 + 20 x

    R = (4 – 0.05 x )(500 + 20 x )

  4. P = 30 + 2 x

    Q = 40 – 5 x

    R = (30 + 2 x )(40 – 5 x )

  5. P = 1.50 – 0.05 x

    Q = 250 + 10 x

    R = (1.50 – 0.05 x )(250 + 10 x )

  6. P = 40 + 2 x

    Q = 80 – 1 x

    R = (40 + 2 x )(80 – x )

Set 2: Solving the Revenue Word Problem

To review the revenue formula, go to Revenue Help

Practice

  1. 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 lose two tenants. What should the rent be for the revenue to be $20,400?
  2. A grocery store sells 4000 gallons of milk per week when the price is $2.80 per gallon. Customer research indicates that for each $0.10 decrease in the price, 200 more gallons of milk will be sold. What does the price need to be so that weekly milk sales reach $11,475?
  3. A movie theater’s concession stand sells an average of 500 buckets of popcorn each weekend when the price is $4 per bucket. The manager knows from experience that for every $0.05 decrease in the price, 20 more buckets of popcorn will be sold each weekend. What should the price be so that $2450 worth of popcorn is sold? How many buckets will be sold at this price (these prices)?
  4. An automobile repair shop performs 40 oil changes per day when the price is $30. Industry research indicates that the shop will lose 5 customers for each $2 increase in the price. What would the shop have to charge in order for the daily revenue from oil changes to be $1120? How many oil changes will the shop perform each day?
  5. A fast food restaurant sells an average of 250 orders of onion rings each week when the price is $1.50 per order. The manager believes that for each $0.05 decrease in the price, 10 more orders are sold. If the manager wants $378 weekly revenue from onion ring sales, what should she charge for onion rings?
  6. A shoe store sells a certain athletic shoe for $40 per pair. The store averages sales of 80 pairs each week. The store owner’s past experience leads him to believe that for each $2 increase in the price of the shoe, one less pair would be sold each week. What price would result in $3648 weekly sales?
View Full Article
Add your own comment