A store has been selling a popular computer game at the price of $40 per unit, a

Question

A store has been selling a popular computer game at the price of $40 per unit, and at this price, players have been buying 60 units per month. The owner of the store wishes to raise the price of the game and estimates that for each $1 increase in price, 3 fewer units will be sold each month. If each unit costs the store $30, at what price should the game be sold to maximize profit? Round your final answer to the nearest dollar. The maximum possible profit will be generated if the computer games arc sold for $ per unit.

Explanation / Answer

let the units sold be x

intial profit: = (40-30)*60= 600$

now let the price be

so profit: (10+x)*(60-3x)

so max profit when x=5

i.e $45 per unit

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.