Interns, Mr. Howell, the prestigious founder and owner of our company would like you to perform an...

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Civil Engineering

Interns,

Mr. Howell, the prestigious founder and owner of our companywould like you to perform an analysis on the company’s weeklyrevenues. He is requiring that the current weekly marginal revenuebe at least $5,000 per week and if it is not currently at thatlevel how fast should sales be changing to reach the targetmarginal revenue level. The most current information regardingweekly revenues can be found in Mr. Howell’s email below.

To be solved using derivatives.

Mr. Kleppin,

It has come to my attention that our weekly marginalrevenues may not be at the minimum level of $5,000 per week as Irequired. According to the sales report, we are currently selling1,000 DVD’s per week and sales are currently rising by 200 DVD’s aweek (gotta love the Marvel Universe! Customers can’t get enough!).They also inform me that our current selling price is $20 and thatthe price is dropping by $1 per week to encourage more sales. Iwould like you, Mr. Kleppin, to give the interns a chance to earnone of the 10 available positions at the end of their internship bygiving them the opportunity to do the analysis. Again, I need toknow if we are at the minimum level of $5,000 per week in marginalrevenue, and if not, at what level should our sales per week be atso as to achieve the minimum marginal revenue level.”

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