a. What sales level maximizes the companys

naivlingr
2021-05-09
Answered

The annual profit for a company that manufactures cell phine accessories can be modeled by the function

$P\left(x\right)=-0.0001{x}^{2}+70x+12500$
where x is the number of units sold and P is the total profit in dollars.

a. What sales level maximizes the companys

a. What sales level maximizes the companys

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irwchh

Answered 2021-05-10
Author has **102** answers

a.The sales level needed to maximize the annual profit is the x-value of the vertex of the quadratic function. The highest point is the vertex of the parabola represented by the equation in the form y=ax2+bx+c with a<0 where the x-coordinate is given by x=−b2a.

Substitute a=−0.0001 and b=70:

So, 350,000 units will maximize the profit.

b.Using the x-value from part (a) and the profit function, the maximum annual profit is:

So, the maximum profit is $12,262,500.

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