You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure of how high to set the cover charge (entrance fee). O

Question

2 months ago

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You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure of how high to set the cover charge (entrance fee). O

ne week you charged $9 per guest and averaged 165 guests per night. The next week you charged $10 per guest and averaged 150 guests per night.
(a) Find a linear demand equation showing the number of guests q per night as a function of the cover charge p. q(p) =
(b) Find the nightly revenue R as a function of the cover charge p. R(p) =
(c) The club will provide two free non-alcoholic drinks for each guest, costing the club $2 per head. In addition, the nightly overheads (rent, salaries, dancers, DJ, etc.) amount to $1,000. Find the cost C as a function of the cover charge p. C(p) =
(d) Now find the profit in terms of the cover charge p. P(p) =
Determine the entrance fee you should charge for a maximum profit. p = $ per guest.

Mathematics

1 answer:

Svet_ta [12.7K] · Answer 1 · 2026-03-24T19:01:26+03:00

a) q(p) = -15p + 300; b) R(p) = -15p² + 300p; c) C(p) = -30p + 1600; d) 1) P(p) = -15p² + 330p - 1600; d) 2) p = $11. To develop the demand equation, we plot the values of the cover charge against the number of guests per night for the given coordinates (9,165) and (10,150). The slope provides the relationship needed to formulate the linear equation relating guests and cover charge. The revenue function follows from multiplying price by guests, while the cost function encompasses overhead and beverage expenses associated with operational costs. The profitability equation emerges from subtracting costs from revenues, allowing us to determine the optimal entrance fee for maximum profit.