Acar rental company has 444cars on their lot. they can rent all 444cars at a rate of $76 per day. they have determined that for every $4 increase in the rental cost, they will rent 3 fewer cars. find the car rental rate that will maximize revenue for the company.

Car rental rate that maximizes revenue is either $332 or $336 per day

Explanation:

The formula for revenue can be stated as: , where x is the amount of $4 increases that are going to be applied.

The first part of the equation refers to the car rental rate and the second part of the equation refers to the cars that are going to be rented.

By elaborating on the formula you have that which can then be simplified into .

After this, you apply the max value function for a quadratic function: , where we have that b is 129 and a is -1.

Then you get that x must be 64.5. In this situation where it is specified that increases can only increase in $4 amounts, I assume that the x must be rounded. Then your x value for maximum revenue is either 64 or 65.

When you apply x=64 or 65 to the car rental rate function, you have that the rate must be either $332 or $336.

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explanation: