A company produces a special new type of TV. The company has fixed costs of $488,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2300 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 $2000. Assume a linea

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
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A company produces a special new type of TV. The company has fixed costs of $488,000, and it costs $1400 to produce each TV. The company projects that if it
charges a price of $2300 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 $2000, Assume a linear
demand.
L.
What price should be set to earn maximum profits?
It is $
$per TV.
(Round answer to two decimal places.)
/1)
/1)
0/1)
0/1)
0/1)
Transcribed Image Text:A company produces a special new type of TV. The company has fixed costs of $488,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2300 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 $2000, Assume a linear demand. L. What price should be set to earn maximum profits? It is $ $per TV. (Round answer to two decimal places.) /1) /1) 0/1) 0/1) 0/1)
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