A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $75. However, its monthly number of sales will increase by 5 units for each $0.10 decrease in price. The company has fixed costs of $500. The cost to make each unit is $4.90. Find the level of production that maximizes the company's profit. They should produce units at a price of $ , which will yield a profit of $

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.7: Direct And Inverse Variation
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A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $75.
However, its monthly number of sales will increase by 5 units for each $0.10 decrease in price. The
company has fixed costs of $500. The cost to make each unit is $4.90. Find the level of production that
maximizes the company's profit.
They should produce
units at a price of $
, which will yield a profit of $
Transcribed Image Text:A company estimates that it can sell 4,000 units each month of its product if it prices each unit at $75. However, its monthly number of sales will increase by 5 units for each $0.10 decrease in price. The company has fixed costs of $500. The cost to make each unit is $4.90. Find the level of production that maximizes the company's profit. They should produce units at a price of $ , which will yield a profit of $
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