An automobile dealer can sell 12 cars per day at a price of $25,000. He estimates that for each $300 price reduction he can sell two more cars per day. If each car costs him $22,000, and fixed costs are $1000, what price should he charge to maximize his profit? [Hint: Let x = the number of $300 price reductions.] $ How many cars will he sell at this price?

College Algebra (MindTap Course List)
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ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
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An automobile dealer can sell 12 cars per day at a price of $25,000. He estimates that for each $300 price reduction he can sell two more cars per day. If each car costs him $22,000, and fixed costs are $1000, what price should he charge to maximize his profit? [Hint: Let x = the number of $300 price reductions.]
How many cars will he sell at this price?
 
 
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