Rate raise would increase their profit


A 60 room hotel is filled to capacity every night at rate of $40 per room. The management wants to find out if a rate raise would increase their profit. They're not interested in rate decrease. Assume management finds out that for each $2 raise in the nightly rate, five fewer rooms will be rented. If each rented room costs $8 a day to service, how much should the management charge per room to maximize profit?

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Mathematics: Rate raise would increase their profit
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