A company estimates that it can sell 3,000 units each month of its product if it prices each unit at $80. However, its monthly number of sales will increase by 20 units for each $0.20 decrease in price. The company has fixed costs of $350. The cost to make each unit is $5.00. 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 $ Get Help: Video еВook

A company estimates that it can sell 3,000 units each month of its product if it prices each unit at $80. However, its monthly number of sales will increase by 20 units for each $0.20 decrease in price. The company has fixed costs of $350. The cost to make each unit is $5.00. 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 $ Get Help: Video еВook

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter4: Polynomial And Rational Functions

Section4.1: Quadratic Functions

Problem 6SC: A company that makes and sells baseball caps has found that the total monthly cost C in dollars of...

See similar textbooks

Similar questions

A garden has 60 yards of fencing and wants to enclose a rectangular garden that requires fencing only on three sides. Find the length and width of the plot that will maximize the area.
At the Pizza Dude restaurant, a 12-in. pizza costs 5.40 to make, and the manager wants to make at least 4.80 from the sale of each pizza. If the pizza will be sold by the slice and each pizza is cut into 6 pieces, what is the minimum charge per slice?
If during the following year it is predicted that each comedy skit will generate 30 thousand and each musical number 20 thousand, find the maximum income for the year. A television program director must schedule comedy skits and musical numbers for prime-time variety shows. Each comedy skit requires 2 hours of rehearsal time, costs 3000, and brings in 20,000 from the shows sponsors. Each musical number requires 1 hour of rehearsal time, costs 6000, and generates 12,000. If 250 hours are available for rehearsal and 600,000 is budgeted for comedy and music, how many segments of each type should be produced to maximize income? Find the maximum income.
A company that makes and sells baseball caps has found that the total monthly cost C in dollars of producing x caps is given by the function C(x)=0.2x280x+9000. Find the production level that will minimize the monthly cost and find the minimum cost.