1. A company produces and sells a consumer product and is able to control the demand forthe product by varying the selling price. The approximate relationship between price anddemand is p= $38+ 2,700/D-5,000/D², for D> 1, where p is the price per unit in dollarsand D is the demand per month. The company is seeking to maximize its profit. The fixedcost is $1,000 per month and the variable cost (c) is $40 per unit.a. What is the number of units that should be produced and sold each month to maximizetotal revenue?b. What is the number of units that should be produced and sold each month to maximizeprofit?c. What is the profitable range of the demand?

b. Profit = Revenue - CostCost = fixed cost + (variable cost)D = 1000 + 40DRevenue = PD = (38 +…

Answered: 1. A company produces and sells a…

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