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24 May, 16:25

The annual revenue and cost functions for a manufacturer of precision gauges are approximately R (x) = 520x-0.02x^2 and c (x) = 200x+100,000, where x denotes the number of gauges. what is the maximum annual profit?

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  1. 24 May, 17:47
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    Profit=Revenue - cost

    P (x) = - 0.02x^2 + 520x - 200x - 100,000

    P (x) = - 0.02x^2 + 320x - 100,000

    P ' (x) = - 0.04x+320=0

    x=320/0.04=8000

    P (8000) = 1,180,000

    Your final answer would be 1,180,000
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