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?
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.
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?