Lynn is selling cushions as part of an enterprise project. On her first attempt, she sold 80 cushions at the cost of £15 each. She hopes to sell more cushions next time. Her adviser
suggests that she can expect to sell 10 more cushions for every £l that she lowers the price
a The number of cushions sold e can be modelled by the equation c = 230 – Hp, where £p is the price of each cushion and H is a constant. Determine the value of H
To model her total revenue, £r, Lynn multiplies the number of cushions sold by the price of
each cushion. She writes this as r = p(230 - Hp).
b Rearrange r into the form A - B(p - C), where A, B and C are constants to be
found.
(3 marks
c Using your answer to part b or otherwise, show that Lynn can increase her revenue by £122.50
through lowering her prices, and state the optimum selling price of a cushion.
9
(2 mark