As Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,700. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 13 contracts. This is down 5 contracts from the figure last year, when your company charged only $2,200 On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $ p per hour. Express Montevideo Productions’ monthly profit as a function of the hourly development fee p . P ( p ) = Find the price it should charge to maximize the profit (in dollars per hour). p = $
As Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each
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