SOLUTION: Donut Delights, Inc. has determined that when x donuts are made daily, the profit P, in dollars, is given by P(x) = –0.002 x2 + 4.1x – 1600 (a) What is the company’s

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Donut Delights, Inc. has determined that when x donuts are made daily, the profit P, in dollars, is given by P(x) = –0.002 x2 + 4.1x – 1600 (a) What is the company’s       Log On

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Question 1040512: Donut Delights, Inc. has determined that when x donuts are made daily, the profit P, in dollars, is given by
P(x) = –0.002 x2 + 4.1x – 1600
(a) What is the company’s profit if 700 donuts are made daily? answer___
(b) How many donuts should be made daily in order to maximize the company’s profit? Show work

Found 2 solutions by stanbon, josmiceli:
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
the profit P, in dollars, is given by
P(x) = –0.002 x2 + 4.1x – 1600
(a) What is the company’s profit if 700 donuts are made daily?
answer:: P(700) = -0.002*700^2 + 4.1*700 - 1600 = $290.00
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(b) How many donuts should be made daily in order to maximize the company’s profit?
Max occurs when x = -b/(2a) = -4.1/(2*-0.002) = -4.1/-0.002 = 4100/2 = 2050
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Cheers,
Stan H.
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Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+P%28x%29+=+-.002x%5E2+%2B+4.1x+-+1600+
This is a parabola with a maximum.
(a)
+x+=+700+
+P%28700%29+=+-.002%2A700%5E2+%2B+4.1%2A700+-+1600+
+P%28700%29+=+-.002%2A490000+%2B+2870+-+1600+
+P%28700%29+=+-980+%2B+2870+-+1600+
+P%28700%29+=+290+
$290 is the profit when 700 donuts are made
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(b)
The formula for the x-value of the maximum is:
+x%5Bmax%5D+=+-b%2F%282a%29+
+x%5Bmax%5D+=+-4.1%2F%282%2A%28-.002%29%29+
+x%5Bmax%5D+=+4.1%2F.004+
+x%5Bmax%5D+=+1025+
To find +P%5Bmax%5D+, plug +x%5Bmax%5D+ back
into the equation
+P%281025%29+=+-.002%2A1025%5E2+%2B+4.1%2A1025+-+1600+
+P%281025%29+=+-.002%2A1050625+%2B+4202.25+-+1600+
+P%281025%29+=+-2101.25+%2B+4202.25+-+1600+
+P%281025%29+=+4202.5+-+3701.25+
+P%281025%29+=+501.25+
The maximum profit, making 1025 donuts is $501.25
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Here's the plot:
+graph%28+800%2C+400%2C+-400%2C+1800%2C+-50%2C+560%2C+-.002x%5E2+%2B+4.1x+-+1600+%29+