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 = -x^2 + 99x - 932

Answer 1

$49.5

Explanation:

y = -x^2 + 99x - 932

The maximum point is :

dy/dx = 0

Take the first derivative of y

dy/dx = - 2x + 99

Put - 2x + 99 = 0

-2x = - 99

x = 99 / 2

x = 49.5

Hence, To make maximum profit, widget should be sold at $49.5 per widget.