A company produces a special new type of TV. The company has fixed costs of $476,000, and it costs $1500 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to

A company produces a special new type of TV. The company has fixed costs of $476,000, and it costs $1500 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to

Elementary Geometry For College Students, 7e

7th Edition

ISBN:9781337614085

Author:Alexander, Daniel C.; Koeberlein, Geralyn M.

Publisher:Alexander, Daniel C.; Koeberlein, Geralyn M.

Chapter8: Areas Of Polygons And Circles

Section8.5: More Area Relationships In The Circle

Problem 30E: At the Pizza Dude restaurant, a 12-in. pizza costs 5.40 to make, and the manager wants to make at...

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Question

A company produces a special new type of TV. The company has fixed costs of

$476,000,

and it costs

$1500

to produce each TV. The company projects that if it charges a price of

$2400

for the TV, it will be able to sell

850

TVs. If the company wants to sell

900

TVs, however, it must lower the price to

$2100.

Assume a linear demand.

What is the maximum profit that can be reached?

It is

$enter your response here

(Round answer to nearest cent.)

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Step 1: Introduce to the given information

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Step 2: Determining the equation of the linear demand or the equation of price in terms of numbers of TV

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Step 3: Determining the cost function and revenue function

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Step 4: Determining the profit function and the critical points

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Step 5: Determining if profit is maximum at critical point using second derivative test

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Step 6: Determining the maximum profit

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