SOLUTION: A company that manufactures jeans estimates that the profit for selling a particular style is given by this equation... P = -250x³ + 1505x² - 300, for 0 < x < 6 ...where <B

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: A company that manufactures jeans estimates that the profit for selling a particular style is given by this equation... P = -250x³ + 1505x² - 300, for 0 < x < 6 ...where <B      Log On


   

Question 1150641: A company that manufactures jeans estimates that the profit for selling a particular style is given by this equation...
P = -250x³ + 1505x² - 300, for 0 < x < 6
...where P is the profit in tens of thousands of dollars and x is the advertising expense in tens of thousands of dollars.
What does an x-intercept mean in the context of this problem?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
the x-intercept is when the profit is equal to 0.

here's what the graph looks like.

$$$

what the graph is telling you is that:

if you spend less than .465 * 10^4 = 4,650 on advertising, the profit will be negative which means you will be taking a loss.
the implication is possibly that you're not advertising enough to generate sufficient interest in your product to allow you to generate a profit.

if you spend more than 5.987 * 10^4 = 59,870, the profit will be negative, which means you w will be taking a loss.
the implication is possibly that your cost of advertising is more than the profit that can be generated from that advertising.

these are only possible explanations.
the real explanation is not visible from looking at the formula by itself without any reason given for what that formula represents.

from the formula, it appears that the maximum profit will be attained when 4.013 * 10^4 = 40,130 is spent on advertising.