Mathematics

Guest

29 May, 14:06

Alex designed a new snowboard. He wants to market it and make a profit. The total initial cost for manufacturing setup, advertising, etc. is $500,000, and the materials to make the snowboards cost $100 per board.

The demand function for selling a similar snowboard is DD (pp) = 50,000 - 100pp, where pp represents the selling price (in

dollars) of each snowboard.

a. Write an expression for each of the following in terms of pp.

Demand Function (number of units that will sell)

Revenue [ (number of units that will sell) (price per unit, pp)

Total Cost (cost for producing the snowboards)

. b. Write an expression to represent the profit.

c. What is the selling price of the snowboard that will give the maximum profit?

d. What is the maximum profit Alex can make?