Problema Solution
Annual profit in thousands of dollars is given by the function, P(x) = 12x - 100, where x is the number of items sold in thousands, x ≥ 10.
describe the meaning of the number 12 in the formula, in terms of its meaning in relation to the profit.
describe the meaning of the number -100 in the formula, in terms of its meaning in relation to the profit.
find the profit for 5 different values of x
graph the profit function over its given domain; use the 5 values calculated in part 3 to construct the graph and connect these points with a straight line in Excel or another graphing utility. Insert the graph in a Word file and attach the graph in a Word file to the class DB thread.
will this profit function have a maximum, if so, what is it?
what steps should the company take to prepare for your answer to part 5?
Answer provided by our tutors
The number 12 is the selling price of a single item inthousands of dollars, so it represents $12,000.
The higher this number is, the greater the profit will be.
P(20) = 12*20 - 100 = 240 - 100 = 140
P(40)= 12*40 - 100 = 480 -100 = 380
P(80)= 12*80 - 100 = 960 - 100 = 860
P(100)= 12*100 - 100 = 1200- 100 = 1100
P(200) = 12*200 - 100 = 2400- 100 = 2300