PSAT Math Multiple-Choice Question 646: Answer and Explanation

Question: 646

At which of the following prices of a lemon shake-up would the total revenue be maximized?

• A. $2.50
• B. $3.00
• C. $3.50
• D. $5.00

Correct Answer: B

Explanation:

(B) Revenue means money made. The amount of money made at any price will be that price times the number of shake-ups sold. Find the approximate revenue at all of the given prices:

Choice (A): $2.50(4,700) = $11,750

Choice (B): $3.00(4,600) = $13,800

Choice (C): $3.50(2,600) = $9,100

Choice (D): $5.00(1,300) = $6,500

Therefore, the largest revenue occurs with choice (B).