The monthly revenue R achieved by selling x wristwatches is figured to be R(x)=90x-0.2x^2.

Calculus
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The monthly revenue R achieved by selling x wristwatches is figured to be R(x)=90x-0.2x^2. The monthly cost C of selling x wristwatches is C(x)=26x+1750. 

A. How many wristwatches must the firm sell to maximize revenue? What is the maximum revenue?

B. Profit is given as P(x)=R(x)-C(x). What is the profit function? 

C. How many wristwatches must the firm sell to maximize profit? What is the maximum profit?

Oct 12th, 2015

Thank you for the opportunity to help you with your question!

1. R(x) = 90x - 0.2x^2

 maximum revenue = - (90)^2/4*(-0.2)    [Hint: use formula, -b^2/4a of quadratic equation, here b = 90, a = -0.2]

Maximum revenue = 10125

Number of wristwatches to be sold for max reveune = 225

2. Profit function, P(x) = R(x) - C(x) = 90x-0.2x^2 - 26x-1750 = -0.2x^2 + 64x - 1750

3. Maximum profit = (-1750)  - (64^2)/(4*-0.2))    [Hint: use formula,c -b^2/4a of quadratic ]

maximum profit = 3370,

Number of wristwatches to be sold = 290.

Please let me know if you need any clarification. I'm always happy to answer your questions. Kindly best this answer if it has helped you.
Oct 12th, 2015

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Oct 12th, 2015
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