Question 5

(a) The Physics Club should charge $11 per T shirt to maximize revenue. At this price, the total revenue is given by R = pq = p(2p2 + 33p) = 11(2(11)2 + 33(11)) = $1,331.

(b) P = Revenue Cost

  P' = 6p2 + 98p 264 = 0 when p = 3.40 or 12.93.

The lower price corresponds to a local minimum for the function P, while the higher price gives a maximum. Therefore, p = $12.93 $13.

(c) With this price, the profit is P(13) = $355 per day.