A company produces a special new type of TV. The company has fixed costs of $487,000, and it costs $1200 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $2200. Assume a linear demand. What is the maximum profit that can be reached? It is $ (Round answer to nearest cent.)

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A company produces a special new type of TV. The company has fixed costs of $487,000,
and it costs $1200 to produce each TV. The company projects that if it charges a price of
$2500 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs,
however, it must lower the price to $2200. Assume a linear demand.
What is the maximum profit that can be reached?
It is $
(Round answer to nearest cent.)
Transcribed Image Text:A company produces a special new type of TV. The company has fixed costs of $487,000, and it costs $1200 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $2200. Assume a linear demand. What is the maximum profit that can be reached? It is $ (Round answer to nearest cent.)
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