A company makes and ships their backpacks at $5 each.If the backpacks sell for $p each,the number sold ,x, is given by x=a/(p-10)+b(130-p),where a and b are constants.what selling price will yield the largest profit for the company
Lets assume that the sales should be:Originally Posted by bobby77
$\displaystyle x= \frac{a}{p+10}+b(130-p)$
The profit per sale is:
$\displaystyle p-5$
so the total profit is:
$\displaystyle P=(p-5).x=(p-5). \left\{\frac{a}{p+10}+b(130-p)\right\}$
Now the usual way to find the maximum total profit is to differentiate $\displaystyle P$ wrt
the price $\displaystyle p$ and then set the result to zero. Then solve for the price which
maximises the profit. Which is what you have to do here.
You should normaly check that the solution/s is/are maxima or minima just
to be sure.
RonL