Dear College Algebra Students- I’m reaching out to you as I was…

  

Dear College Algebra Students- I’m reaching out to you as I was… Dear College Algebra Students-I’m reaching out to you as I was just promoted to Head of Sales for Disney World and I really want to make a good impression. The end of April marks the start of our campaign for Annual Passes to Walt Disney Properties in Orlando for next year. We are currently selling our Pirate Pass for Florida residents at $700 giving access during most times of the year (Blackout dates apply). At this rate, we’ve been regularly averaging 1200 Pirate passholders each year. During my first week in this role, I arranged for some test groups of Florida residents to fill out a survey to gauge how much they would be willing to pay for this service. The people in Data Analytics summarized that the results from the survey suggested that each $10 decrease in price should lead to an additional 25 Pirate passholders! I would love to be able to show my bosses an increase in membership, but am worried about making the price too low and hurting our overall revenue. I know there must be an optimal price to charge for this membership, but I’m not sure how to find it other than trial and error which is very impractical in our business (it sends a very bad precedent if we’re constantly changing our annual pass fees). Dr. Murphy has graciously volunteered your help as he mentioned that you have been practicing optimization in class.I’m hoping to use the Pirate Pass as a pilot group to test whether we can improve our overall profit. If you can explain how you are able to find an optimal price for this pass, I’m sure I can apply the same idea to our other Annual Pass options and really solidify my standing in my new role. Please help me find the ideal price for our Pirate package and let me know how many passholders I can expect at this price point as well as the overall revenue we will be receiving from these passholders. As a point of reference, we currently expect a revenue of $840,000 from our Pirate Pass members. Thank you so much for your help in this matter.Sincerely, Mick E. MausHead of Sales, Walt Disney World 345 Pluto BlvdOrlando, FL 51213  :You will need to turn in your work on solving the problem including any functions that you used, the optimal price to charge, the expected number of passholders and the total revenue he can expect if he was to charge this much.make sure to explain what you did (not just a play-by-play) and why you did it?  Math Algebra MAT 151 Share (0)