A company estimates that it can sell 3,000 units each month of its product if it prices each unit at $65. However, it’s monthly number of sales will increase by 20 units for each $0.25 decrease in price. The company has fixed costs of $300. The cost to make each unit is $4.10. Fine the level of production that maximizes the company’s profit. The should produce ____ units at a price of $_____, which will yield a profit of $______.

A company estimates that it can sell 3,000 units each month of its product if it prices each unit at $65. However, it’s monthly number of sales will increase by 20 units for each $0.25 decrease in price. The company has fixed costs of $300. The cost to make each unit is $4.10. Fine the level of production that maximizes the company’s profit. The should produce __ units at a price of $_, which will yield a profit of $____.

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 3SC: In Example 3, if the accountant earns a profit of 100 on each individual return and a profit of 175...

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