(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
(100 + 8q)
2p2 + 33p)
(100 + 8(
2p2 + 33p))
2p3 + 49p2
264p
100
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.