Math Problem Statement

If a bike company has a revenue of R(x) = 325x - 2x^2 and their costs are C(x) = 4500 + 55x for x bikes sold, find the maximum profit. Remember P(x) = R(x) - C(x). Round to the nearest dollar.

Solution

To find the maximum profit for the bike company, we first need to determine the profit function P(x)P(x), which is the difference between the revenue R(x)R(x) and the cost C(x)C(x). Given:

R(x)=325x2x2R(x) = 325x - 2x^2 C(x)=4500+55xC(x) = 4500 + 55x

The profit function P(x)P(x) is: P(x)=R(x)C(x)=(325x2x2)(4500+55x)P(x) = R(x) - C(x) = (325x - 2x^2) - (4500 + 55x)

Simplifying this, we get: P(x)=2x2+325x55x4500P(x) = -2x^2 + 325x - 55x - 4500 P(x)=2x2+270x4500P(x) = -2x^2 + 270x - 4500

To find the maximum profit, we need to find the vertex of the parabola represented by P(x)P(x). The xx-coordinate of the vertex (and thus the number of bikes sold for maximum profit) can be found using the formula x=b2ax = -\frac{b}{2a}, where aa and bb are the coefficients from the quadratic term and the linear term of P(x)P(x) respectively.

Here, a=2a = -2 and b=270b = 270, so: x=2702(2)=2704=67.5x = -\frac{270}{2(-2)} = \frac{270}{4} = 67.5

Since the number of bikes sold, xx, must be an integer, we will evaluate the profit at x=67x = 67 and x=68x = 68 to determine which gives a higher profit.

Calculating P(67)P(67): P(67)=2(67)2+270(67)4500P(67) = -2(67)^2 + 270(67) - 4500

Calculating P(68)P(68): P(68)=2(68)2+270(68)4500P(68) = -2(68)^2 + 270(68) - 4500

We will now compute these values.

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Math Problem Analysis

Mathematical Concepts

Revenue
Cost Function
Profit Function
Quadratic Equation
Optimization

Formulas

Profit: P(x) = R(x) - C(x)
Quadratic Vertex: x = -b / 2a

Theorems

Vertex formula for finding the maximum of a quadratic function

Suitable Grade Level

High School (Grades 10-12)