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2) () = 2 + 4 − 40 is the total daily cost to produce for x bracelets. The bracelets sell for $8 each. (I kept the numbers in the problem small to make the math easier) a) Create a revenue function b) Create a profit function c) Determine the number of bracelets the company should produce and sell to maximize profit. d) What is the maximum profit?

Respuesta :

raphealnwobi

Answer:

The answer is below

Step-by-step explanation:

Given the cost as C(x) = x² + 4x - 40

a) Since the bracelets sell for $8 each, the revenue from x bracelets is given as:

Revenue = price for each bracelet × number of bracelet

Revenue = 8 × x = 8x

b) Profit (P) = Revenue - Cost

P(x) = 8x - [x² + 4x - 40]

P(x) = 8x - x² - 4x + 40

P(x) = -x² + 4x + 40

c) To maximize profit, the derivative of profit is equal to 0

Hence P'(x) = 0

-2x + 4 =0

2x = 4

x = 2

To maximize profit, the company should produce 2 bracelets

d) The maximum profit is:

P(2) = -(2²) + 4(2) + 40 = -4 + 8 + 40

P(2) = $44

The maximum profit is $44

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