A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $80. However, its monthly number of sales will increase by 15 units for each $0.15 decrease in price. The company has fixed costs of $350. The cost to make each unit is $4.90. Find the level of production that maximizes the company's profit. They should produce units at a price of $ which will yield a profit of $

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question
A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $80.
However, its monthly number of sales will increase by 15 units for each $0.15 decrease in price. The
company has fixed costs of $350. The cost to make each unit is $4.90. Find the level of production that
maximizes the company's profit.
They should produce
units at a price of $
which will yield a profit of $
Transcribed Image Text:A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $80. However, its monthly number of sales will increase by 15 units for each $0.15 decrease in price. The company has fixed costs of $350. The cost to make each unit is $4.90. Find the level of production that maximizes the company's profit. They should produce units at a price of $ which will yield a profit of $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,