Question

A company sells widgets. The amount of profit, y, made by the company, is related to the selling price of each widget, x, by the given equation. Using this equation, find out what price the widgets should be sold for, to the nearest cent, for the company to make the maximum profit. y=-6x^2+190x-826

Answer 1

The maximum profit is $854

Explanation:

Profit is the difference between the revenue and the cost price of an item. It is given by:

Profit = selling price - cost price

Since x represent the profit made by the company, is related to the selling price of each widget, x and it is given by the formula:

y = -3x² + 155x - 1148

At maximum profit, dy/dx = 0, hence:

dy/dx = -6x + 155

0 = -6x + 155

6x = 155

x = 25.83

The maximum profit is at gotten when the selling price of each widget is 25.83. Hence:

y = -3(25.83)² - 155(25.83) - 1148

y = $854

Therefore the maximum profit is $854