Entertainment A theater has been staging children's plays during the summer. The average attendance at each performance is 400 people, and the cost of a ticket is $3. Next summer, the theater manager would like to increase the cost of the tickets, while maximizing profits. The manager estimates that for every $1 increase in ticket price, the attendance at each performance will decrease by 20.
a. What price should the manager propose to maximize profits?
b. What maximum profit might be expected?