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

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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

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.

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Oct 12th, 2015

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Oct 12th, 2015
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Oct 12th, 2015
Oct 17th, 2017
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