# Marginal Revenue Calculation for DIY-Cleaner Company

What is the formula for calculating the marginal revenue of a DIY-cleaner company based on its sales figures?

The formula for calculating the marginal revenue of a DIY-cleaner company based on its sales figures is MR = 4e^(0.01x), where x represents the number of sales of the DIY-cleaner.

## Understanding Marginal Revenue Calculation for DIY-Cleaner Company

**Marginal Revenue Definition:**Marginal revenue is defined as the change in revenue that occurs when one more unit of a product is sold. For the DIY-cleaner company in question, the marginal revenue formula is given by MR = 4e^(0.01x), where x represents the number of sales of the DIY-cleaner.

**Revenue Function Differentiation:**To determine the marginal revenue earned from selling the DIY-cleaner, the company needs to differentiate the revenue function with respect to the quantity sold. The derivative of the revenue function R(x) with respect to x gives the marginal revenue function, which is MR = 4e^(0.01x) dollars.

**Calculating Marginal Revenue:**If the company has 1000 sales of the DIY-cleaner, the marginal revenue can be calculated as follows: MR⇒R′(1000) = 4e^(0.01*1000) MR⇒R′(1000) = 4e^(10) MR⇒R′(1000) = 22,026,465.98 dollars Therefore, the answer to the marginal revenue earned from selling 1000 units of DIY-cleaner is $22,026,465.98.

**Understanding Marginal Revenue in Business:**In a perfect competition scenario, the marginal revenue equals the sale price per unit. However, in real-world situations where the demand curve is not perfectly elastic, the marginal revenue may differ from the price, leading to important considerations for businesses in pricing strategies and revenue optimization. In conclusion, the marginal revenue calculation for the DIY-cleaner company provides essential insights into revenue generation from sales. By understanding the marginal revenue formula and its implications, businesses can make informed decisions to maximize profitability.