Question 14 Marks
A magazine company in a town has $5000$ subscribers on its list and collects fix charges of $₹ 3000$ per year from each subscriber. 'The company proposes to increase the annual charges, and it is believed that for every increase of $₹ 1$ one subscriber will discontinue service.

Based on the above information, answer the following questions.

Based on the above information, answer the following questions.
- If $x$ denote the amount of increase in annual charges, then revenue $R,$ as a function of $x$ can be represented as.
- $R(x) = 3000 × 5000 × x$
- $R(x) = (3000 - 2x)(5000 + 2x)$
- $R(x) = (5000 + x)(3000 - x)$
- $R(x) = (3000 + x)(5000 - x)$
- If magazine company increases $₹\ 500$ as annual charges, then R is equal to.
- $₹\ 15750000$
- $₹\ 16750000$
- $₹\ 17500000$
- $₹\ 15000000$
- If revenue collected by the magazine company is $₹\ 15640000$, then value of amount increased as annual charges for each subscriber, is.
- $400$
- $1600$
- Both $(a)$ and $(b)$
- None of these
- What amount of increase in annual charges will bring maximum revenue?
- $₹\ 1000$
- $₹\ 2000$
- $₹\ 3000$
- $₹\ 4000$
- Maximum revenue is equal to.
- $₹\ 15000000$
- $₹\ 16000000$
- $₹\ 20500000$
- $₹\ 25000000$
Answer
If $x$ be the amount of increase in annual charges, then number of subscriber reduces to $5000 -x $
$\therefore$ Revenue, $R(x) = (3000 + x)(5000 - x)$
$= 15000000 + 2000x - x^2, 0 < x < 5000$
Clearly, at $x = 500$
$R(500) = 15000000 + 2000(500) - (500)^2$
$= 15000000 + 1000000 - 250000 = ₹\ 15750000$
Since, $15000000 + 2000x - x^2 = 15640000 ($Given$)$
$\Rightarrow x^2 - 2000x + 640000 = 0$
$\Rightarrow x^2 - 1600x - 400x + 640000 = 0$
$\Rightarrow x(x - 1600) - 400(x - 1600) = 0$
$\Rightarrow x = 400, 1600$
$\frac{\text{dR}}{\text{dx}}=2000-2\text{x}\text{ and } \frac{\text{d}^2\text{R}}{\text{dx}^2}=-2<0$
For maximum revenue $\frac{\text{dR}}{\text{dx}}=0$
$\Rightarrow\text{x}=0=1000$
$\therefore $ Required amount $=₹\ 1000$
Maximum revenue $= R(1000)$
$= (3000 + 1000)(5000 - 1000)$
$= 4000 × 4000 = ₹\ 16000000$
View full question & answer→- (d) $R(x) = (3000 + x)(5000 - x)$
If $x$ be the amount of increase in annual charges, then number of subscriber reduces to $5000 -x $
$\therefore$ Revenue, $R(x) = (3000 + x)(5000 - x)$
$= 15000000 + 2000x - x^2, 0 < x < 5000$
- (a) $₹\ 15750000$
Clearly, at $x = 500$
$R(500) = 15000000 + 2000(500) - (500)^2$
$= 15000000 + 1000000 - 250000 = ₹\ 15750000$
- (c) Both $(a)$ and $(b)$
Since, $15000000 + 2000x - x^2 = 15640000 ($Given$)$
$\Rightarrow x^2 - 2000x + 640000 = 0$
$\Rightarrow x^2 - 1600x - 400x + 640000 = 0$
$\Rightarrow x(x - 1600) - 400(x - 1600) = 0$
$\Rightarrow x = 400, 1600$
- (a) $₹\ 1000$
$\frac{\text{dR}}{\text{dx}}=2000-2\text{x}\text{ and } \frac{\text{d}^2\text{R}}{\text{dx}^2}=-2<0$
For maximum revenue $\frac{\text{dR}}{\text{dx}}=0$
$\Rightarrow\text{x}=0=1000$
$\therefore $ Required amount $=₹\ 1000$
- (b) $₹\ 16000000$
Maximum revenue $= R(1000)$
$= (3000 + 1000)(5000 - 1000)$
$= 4000 × 4000 = ₹\ 16000000$




















