# of Rain jackets produced Total Cost 40 $11,750 100 $18,985 180 $28,500 260 $38
ID: 2864345 • Letter: #
Question
# of Rain jackets produced
Total Cost
40
$11,750
100
$18,985
180
$28,500
260
$38,000
310
$44,000
360
$50,000
The same athletics company does some market research and finds the following data estimating the number of people that are willing to buy the jackets at a certain price. For example, if the selling price of the jackets was $250, their estimates show that they would sell 60 jackets.
# of rain jackets demanded
price
20
$265
60
$250
140
$225
220
$205
320
$175
g) What is the price the jackets should be sold at to generate the maximum revenue?
h) Using this function and your cost function from the previous example, find a profit function, P(x), where P is the profit (in dollars) generated by the production and sale of x jackets. What type of function is this?
i) How many rain jackets should be sold to generate a maximum profit?
j) What is the maximum profit?
# of Rain jackets produced
Total Cost
40
$11,750
100
$18,985
180
$28,500
260
$38,000
310
$44,000
360
$50,000
Explanation / Answer
g) To generate maximum revenue, the price should be $175.
For h) , i) & j) the data from previous example is required.
# of rain jackets demanded Price Revenue generated 20 265 5300 60 250 15000 140 225 31500 220 205 45100 320 175 56000Related Questions
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