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Home > CALC > Chapter 8 > Lesson 8.1.4 > Problem 8-45
8-45.
The Pi hotel has 314 rooms. The charge per night is $159 with an average occupancy of 265. A marketing firm informs the management of the hotel that each $1 reduction in the nightly fee will entice two more guests to stay at the hotel. What should they charge in order to have the maximum revenue?
Revenue = (cost per room)(number of rooms sold)
Let x = number of times the price was decreased.