The manager of a large apartment complex knows from experience that 90 units will be occupied if the rent is

Question

424 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 4 dollar increase in rent. Similarly, one additional unit will be occupied for each 4 dollar decrease in rent. What rent should the manager charge to maximize revenue?

I HAVE NO IDEA how to do this.

Please help !

Answer 1

What--are you that manager?

Assume you have more than 90 units to rent out. Let's say you have 150 total units.

Set up your spreadsheet.

In column A, you put the Price

In column B you put the Units Rented

In the price column, type in some rent prices, say 432, 428, 424, 420, 416 (you know, increments of 4).

Next to each price, you put the units rented. Start with the 424 row. Put 90 units there. For each row above, you put one less unit rented. For each row below, you put one more unit rented.

Now, in column C you create a formula, which is A x B. This tells you your total revenue. Once you know the revenue totals for each situation, you can make a judgement.

You know, like a manager would.

Answer 2

are we doing homework again? how many units are in the complex total?