A car rental agency rents 480 cars per day at a rate of $20 per day. For each $1 increase in rate, 10 fewer cars are rented. At what rate should the cars be rented to produce the maximum income? What is the maximum income?​

340 cars at $ 34 should be rented to produce the maximum income of $ 11,560.

Step-by-step explanation:

Given that a car rental agency rents 480 cars per day at a rate of $ 20 per day, and for each $ 1 increase in rate, 10 fewer cars are rented, to determine at what rate should the cars be rented to produce the maximum income and what is the maximum income, the following calculations must be performed:

480 x 20 = 9600

400 x 28 = 11200

350 x 33 = 11550

300 x 38 = 11400

310 x 37 = 11470

320 x 36 = 11520

330 x 35 = 11550

340 x 34 = 11560

Therefore, 340 cars at $ 34 should be rented to produce the maximum income of $ 11,560.

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7.3

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