A manufacturer of a certain brand of appliance estimates that he can sell 5000 units a year at Php 900.00 each and that he can s

Question

2 months ago

10

ell 1500 units more per year for each Php 100.00 decrease in price? What price per unit will give the greatest returns?

2 answers:

lawyer [12.5K] · Answer 1 · 2026-03-07T21:50:22+03:00

To start, calculate the return for each price per unit

Return = quantity sold x price per unit

Return1 = 5000 units x Php 900

Return1 = Php 4,500,000

Next, figure out the return for the other price per unit

Return2 = quantity sold x price per unit

Return2 = (5000 + 1500 units) x ( Php 900 – 100)

Return2 = Php 5,200,000

Thus, a price of Php 800 per unit will result in a higher return.

zzz [12.3K] · Answer 2 · 2026-03-07T21:50:44+03:00

Conclusion: Php 800 per unit yields the maximum returns.

Detailed explanation:

The available data indicates that

Units sold = 5000

Price per unit = Php 900.00

The total revenue would be

$5000\times 900\\\\=Php\ 4500000$

If it increases by 1500 units.

Total units become 6500, calculated as 5000 + 1500.

The price reduces by Php 100.00, leading to a new price of 800.

The overall revenue can be computed as

$6500\times 800\\\\=Php\ 5200000$

Consequently, Php 800 per unit provides the greatest returns.