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OPTIMIZATION PROBLEMS (Cost and Revenue) Example COST PROBLEM An open topped rectangular box has a volume of 250 cm3. The width of the box is 5 cm. The cost for materials to make the box is $2/cm2 for the base and $1/cm2 for the sides. Determine the dimensions that would minimize the cost for making the box. NOTE: Profit = Revenue – Cost Revenue = Price x Quantity R = (current price changes) x (current quantity changes) Example REVENUE PROBLEM A commuter train carries 2000 passengers daily from a suburb into a large city. The cost to ride the train is $7 per person. Market research shows that 40 more people would ride the train for each $0.10 decrease in price. If the capacity of the train is 2600 passengers, determine the fare that the railway should charge in order to obtain the largest possible revenue. Homework: p.152–154 #5–7, 9, 10, 12–14