SOLUTION: A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they can produce 100,000 chips per week at a cost of $40 per chip, and sell them for $65 per chip

Question 169289: A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they can produce 100,000 chips per week at a cost of $40 per chip, and sell them for $65 per chip. They also find that they can produce 125,000 chips per week at a cost of $35 per chip, and sell them for $63 per chip. How much profit can they expect to earn if they produce 130,000 chips per week?

Answer by jojo14344(1513) (Show Source): You can put this solution on YOUR website!

So we need to know the and for 130,000 chips then.
Via the data given, we need to do INTERPOLATION to find the 2 unknowns.
.
First, we'll get the .
Let for 130,000 chips:
Based on Given--->
By Interpolation:
, cross multiply

=$34.00/ea, cost
.
Next for the price of 130,000 chips based on cost=$34.00/ea:
Based on Selling Price Given on other Quantities produced, let .
By Interpolation --->

, cross multiply

---->
=$62.60/ea, Selling
.
For the , working eqn
=$8,138,000.00
=$4,420,000.00
Then Via working eqn,

=$3,718,000.00 ---> Answer
Thank you,
Jojo

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