SOLUTION: A company can produce a doll at a cost of $5 per dolls. When the company sells the dolls at a price of $40 they can sell 400 dolls each week. It is estimated that for every $0.50 d
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-> SOLUTION: A company can produce a doll at a cost of $5 per dolls. When the company sells the dolls at a price of $40 they can sell 400 dolls each week. It is estimated that for every $0.50 d
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Question 1094144: A company can produce a doll at a cost of $5 per dolls. When the company sells the dolls at a price of $40 they can sell 400 dolls each week. It is estimated that for every $0.50 decrease in the price, they can sell 20 more dolls.
Find the price that will maximize the profit for the company. Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Let = profit per week
Let = the number of $.50 decreases in price
[ profit ] = [ income ] - [ cost ]
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The n-value of the maximum is at:
and
The maximum weekly profit is $20,250
The price that will maximize the profit is:
$27.50 per doll
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