A travel agency currently has 80 people signed up a tour. The price of a ticket is $5000 per person. The agency has chartered a plane seating 150 people at a cost of $250000. Additional costs to the agency are incidental fees of $300 per person. For each $30 that the price is lowered, one new person will sign up. How much should the price per person be lowered to maximize the profit fo the agency?

Question

anonymous · Answer

This is what I got so far: 
Price: 5000-30x
quantity: 80 + X
Revenue: (500-30x)(80+x)
Cost: 300 X
Profit: Revenue-cost
profit: (500-30x)(80+x)-300 X

am I on the right track??

anonymous · Answer

yeah, i think you're right :)