Question

A bicycle company is manufacturing a new bicycle and trying to decide on a price that will maximize their profit. The graph below represents profit (P), in thousands of dollars, generated by the price of each bike (x), in hundreds of dollarsif the company wants to make profit of $137,500, what should the price of the bicycle be?

Answer 1

From the graph, P(x) is 137.5 thousand dollars when x is 4.5 or 7.5 hundred dollars.

That is

137.5 thousand of dollars = 137.5 x $1000 = $137500

4.5 or 7.5 hundred dollars is 4.5 x $100 or 7.5 x $100 = $450 or $750

Therefore, if the company wants to make a profit of $137500, then the price of the bicycle should be $450 or $750