Math Problem Statement

The latest demand equation for your "Banjos Rock" T-shirts is given by q = −30x + 3600 where q is the number of shirts you can sell in one week if you charge x dollars per shirt. When you charge x dollars per shirt, your weekly cost function (in dollars) is given by C(x) = −900x + 141750

Solution

To analyze the given functions, let's start by summarizing the equations:

  1. Demand Equation:
    q=30x+3600q = -30x + 3600
    This equation tells us the number of T-shirts (qq) sold in a week when the price per T-shirt is xx dollars.

  2. Cost Function:
    C(x)=900x+141750C(x) = -900x + 141750
    This equation represents the weekly cost in dollars when the price per T-shirt is xx dollars.

Now, let's explore some key aspects:

A. Revenue Function

The revenue function R(x)R(x) is given by multiplying the price per shirt (xx) by the number of shirts sold (qq): R(x)=xq=x(30x+3600)=30x2+3600xR(x) = x \cdot q = x(-30x + 3600) = -30x^2 + 3600x

B. Profit Function

The profit function P(x)P(x) is the difference between the revenue function and the cost function: P(x)=R(x)C(x)=(30x2+3600x)(900x+141750)P(x) = R(x) - C(x) = (-30x^2 + 3600x) - (-900x + 141750) Simplifying this, we get: P(x)=30x2+3600x+900x141750=30x2+4500x141750P(x) = -30x^2 + 3600x + 900x - 141750 = -30x^2 + 4500x - 141750

C. Finding the Break-Even Points

To find the break-even points where profit is zero (P(x)=0P(x) = 0), solve: 30x2+4500x141750=0-30x^2 + 4500x - 141750 = 0 Simplify by dividing everything by -30: x2150x+4725=0x^2 - 150x + 4725 = 0 Using the quadratic formula, x=b±b24ac2ax = \frac{-b \pm \sqrt{b^2 - 4ac}}{2a}: x=150±150241472521=150±22500189002=150±36002x = \frac{150 \pm \sqrt{150^2 - 4 \cdot 1 \cdot 4725}}{2 \cdot 1} = \frac{150 \pm \sqrt{22500 - 18900}}{2} = \frac{150 \pm \sqrt{3600}}{2} x=150±602x = \frac{150 \pm 60}{2} So, the solutions are: x=150+602=105andx=150602=45x = \frac{150 + 60}{2} = 105 \quad \text{and} \quad x = \frac{150 - 60}{2} = 45

Thus, the break-even points occur when the price per shirt is $45 or $105.

Would you like more details on these calculations or have any specific questions? Here are some related questions to consider:

  1. What is the maximum profit, and at what price does it occur?
  2. How many T-shirts are sold at the break-even points?
  3. What happens to profit if the price is set below $45 or above $105?
  4. How would changes in cost or demand equations affect the profit function?
  5. What is the significance of the vertex of the profit parabola?

Tip: When analyzing profit functions, identifying the break-even points and the price for maximum profit can offer valuable insights for pricing strategies.

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Equations
Profit and Revenue Analysis

Formulas

Revenue function: R(x) = x(-30x + 3600) = -30x^2 + 3600x
Profit function: P(x) = R(x) - C(x) = -30x^2 + 4500x - 141750
Quadratic formula: x = (-b ± √(b² - 4ac)) / 2a

Theorems

Quadratic formula
Break-even analysis

Suitable Grade Level

Grades 10-12