A company manufactures and sells x television sets per month. The monthly cost a
ID: 2876486 • Letter: A
Question
A company manufactures and sells x television sets per month. The monthly cost and price-demand equations are C(x)=72,000+60x and p(x)=300(x/20),
0lx6000.
(A) Find the maximum revenue.
(B) Find the maximum profit, the production level that will realize the maximum profit, and the price the company should charge for each television set.
(C) If the government decides to tax the company $55 for each set it produces, how many sets should the company manufacture each month to maximize its profit? What is the maximum profit? What should the company charge for each set?
(A) The maximum revenue is $
(Type an integer or a decimal.)
(B) The maximum profit is when sets are manufactured and sold for each.
(Type integers or decimals.)
(C) When each set is taxed at $55, the maximum profit is when sets are manufactured and sold for each.
(Type integers or decimals.)
Explanation / Answer
A)p(x)=300(x/20),
revenue R(x)=p*x
revenue R(x)=300x -(x2/20)
for maximum revenue dR/dx =0 ,
=>300-(2x/20)=0
=>x/10=300
=>x=3000
maximum revenue = R(3000)=300*3000 -(30002/20)
maximum revenue = R(3000)=450000$
B) profit =revenue -cost
profit P(x)=300x -(x2/20)-72000-60x
profit P(x)=240x -(x2/20)-72000
for maximum cost dP/dx =0
240 -(2x/20)=0
x=240*10
x=2400
p(2400)=300(2400/20)=180
profit P(2400)=240*2400 -(24002/20)-72000 =216000
The maximum profit is 216000$ when 2400 sets are manufactured and sold for 180$ each
c)
profit =revenue -cost -tax
profit P(x)=300x -(x2/20)-72000-60x-55x
profit P(x)=185x -(x2/20)-72000
for maximum cost dP/dx =0
185-(2x/20)=0
x=185*10
x=1850
p(1850)=300(1850/20)=207.5
profit P(1850)=185*1850 -(18502/20)-72000
profit P(1850)=99125$
When each set is taxed at $55, the maximum profit is 99125$ when 1850 sets are manufactured and sold for 207.5$ each.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.