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:
-
Demand Equation:
This equation tells us the number of T-shirts () sold in a week when the price per T-shirt is dollars. -
Cost Function:
This equation represents the weekly cost in dollars when the price per T-shirt is dollars.
Now, let's explore some key aspects:
A. Revenue Function
The revenue function is given by multiplying the price per shirt () by the number of shirts sold ():
B. Profit Function
The profit function is the difference between the revenue function and the cost function: Simplifying this, we get:
C. Finding the Break-Even Points
To find the break-even points where profit is zero (), solve: Simplify by dividing everything by -30: Using the quadratic formula, : So, the solutions are:
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:
- What is the maximum profit, and at what price does it occur?
- How many T-shirts are sold at the break-even points?
- What happens to profit if the price is set below $45 or above $105?
- How would changes in cost or demand equations affect the profit function?
- 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
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