Problema Solution

Maximum profit. A chain store manager has been told by the main office that daily profit, P, is related to the number of clerks working that day, x, according to the function P = -25x^2 + 300x. What number of clerks will maximize the profit, and what is the maximum possible profit?

Answer provided by our tutors

The profit function is given as

p=-25x^2+300x

the derivative will be

dp/dx=-50x+300

Put dp/dx=0

-50x+300=0

X=6

Profit is -25(6*6)+300(6)

Which is 1800

the number of clerks are 6 and maximum profit is 900