SOLUTION: A company’s profit is described by the formula P(x)=-5x^2+600x+1500 where x is the price in dollars that the company charges for its product. What should the company charge for

Algebra ->  Finance -> SOLUTION: A company’s profit is described by the formula P(x)=-5x^2+600x+1500 where x is the price in dollars that the company charges for its product. What should the company charge for       Log On


   

Question 1154224: A company’s profit is described by the formula P(x)=-5x^2+600x+1500
where x is the price in dollars that the company charges for its product. What should the company charge for the product to generate the maximum profit, P?
Answer by Edwin McCravy(20055) About Me  (Show Source):
You can put this solution on YOUR website!
The answer is the x-coordinate of the maximum point, which is the vertex
when the coefficient of x² is negative.

The formula for that particular x-value of ax²+bx+c is

-b%2F%282a%29 

The formula for that particular x-value of -5x²+600x+1500 is

-600%2F%282%2A%28-5%29%29=%22%22
-600%2F%28-10%29=%22%22
60

That's the answer, $60.

When they charge exactly $60, they make $19,500.
If the charge $1 less, $59, they will make only $19,495, $5 less.
If the charge $1 more, $61, they will also make only $19,495, $5 less.

Edwin