Answer:
2.5 times rebate will maximize its revenue
Explanation:
From the question, the store has been selling 400 Blu-ray disc players a week at $350 each.
We are also informed that market survey indicates that for each $30 rebate offered to buyers, the number of units sold will increase by 60 a week.
Let say that the rebate is offered at "x" times, then units sold would be 400+60x
We can calculate the original revenue as (400*350)= $140000
After rebate of x times 30 dollars New revenue can be calculated as
R(x)=(400+60x)(350-30x)
= -1800x^2 +900x+140000
R'(x)=9000-3600x
R"(x)=-3600
If first derivatives is equted to zero
0=9000-3600x
X= 9000/3600
X=2.5
Which means 2.5 times rebate will maximize its revenue
