SOLUTION: A pizza shop has determined that it can sell x pizzas per night at a price of (9 - 0.02 x) dollars per pizza. There are fixed costs totalling $110 per night to run the shop, plus $

Algebra ->  Finance -> SOLUTION: A pizza shop has determined that it can sell x pizzas per night at a price of (9 - 0.02 x) dollars per pizza. There are fixed costs totalling $110 per night to run the shop, plus $      Log On


   



Question 1078618: A pizza shop has determined that it can sell x pizzas per night at a price of (9 - 0.02 x) dollars per pizza. There are fixed costs totalling $110 per night to run the shop, plus $3 for each pizza made. To maximize profit, how many pizzas should be made each night?
To achieve a maximum profit of $_______________ per night, make____________ pizzas a night.

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The income per night is:
+x%2A%28+-.02x+%2B+9+%29+
The cost to make pizza per night is:
+3x+%2B+110+
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Let +P+ = profit per night
[ profit ] = [ income ] - [ cost ]
+P+=+x%2A%28+-.02x+%2B+9+%29+-+3x+-+110+
+P+=+-.02x%5E2+%2B+9x+-+3x+-+110+
+P+=+-.02x%5E2+%2B+6x+-+110+
-----------------------------------
The x-value of the maximum is:
+x%5Bmax%5D+=+-b%2F%282a%29+
+a+=+-.02+
+b+=+6+
+-b%2F%282a%29+=+-6%2F%282%2A%28-.02%29%29+
+x%5Bmax%5D+=+-6%2F%28-.04%29+
+x%5Bmax%5D+=+150+
----------------------
plug this back into +P+ to get +P%5Bmax%5D+
+P%5Bmax%5D+=+-.02%2A150%5E2+%2B+6%2A150+-+110+
+P%5Bmax%5D+=+-450+%2B+900+-+110+
+P%5Bmax%5D+=+340+
----------------------
The maximum profit of $340/night can be
earned by making 150 pizzas
--------------------------------
Here's a plot of the profit function:
+graph%28+400%2C+400%2C+-40%2C+350%2C+-40%2C+400%2C+-.02x%5E2+%2B+6x+-+110+%29+