A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $75. However, its monthly number of sales will increase by 5 units for each $0.10 decrease in price. The company has fixed costs of $500. The cost to make each unit is $4.90. Find the level of production that maximizes the company's profit. They should produce units at a price of $ , which will yield a profit of $
A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $75. However, its monthly number of sales will increase by 5 units for each $0.10 decrease in price. The company has fixed costs of $500. The cost to make each unit is $4.90. Find the level of production that maximizes the company's profit. They should produce units at a price of $ , which will yield a profit of $
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.7: Direct And Inverse Variation
Problem 36PS
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