At fabric world, ribbon is sold at a rate of $2 for 1 yard. what rate gives the cost for 8 yards of fabric ?

Maximum revenue = $8000

The price that will guarantee the maximum revenue is $40

Step-by-step explanation:

Given that:

Price of product = $35

Total sale of items = 225

For every dollar increase in the price, the number of items sold will decrease by 5.

The total cost of item sold = 225 ×35

The total cost of item sold = 7875

If c should be the dollar unit in price increment;

Therefore; the cost function is :

For maximum revenue;

0+225-35× 5 -10c = 0

225 - 175  =10c

50 = 10c

c = 50/10

c = 5

Maximum revenue =

Maximum revenue =

Maximum revenue = (35 + 5)(225-25)

Maximum revenue = (40 )(200)

Maximum revenue = $8000

The price that will guarantee the maximum revenue is :

=(35 +c)

= 35 + 5

= $40