Question

The profit of a company is given by the function P(x) = 50 + 36x - x^2 where x is the amount (in thousands) spent on advertising. Find the amount spent on advertising that will bring in maximum profit. (6 marks)

Answer 1

18 thousand

Explanation:

The vertex of quadratic ax² +bx +c is found at the x-value ...

x = -b/(2a)

Here, that means the x-value of the maximum is ...

x = (-36)/(2(-1)) = 18

18 thousand spent on advertising will bring in maximum profit.