Math Problem Statement

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 the maximum amount of profit the company can make, to the nearest dollar. y, equals, minus, x, squared, plus, 75, x, minus, 636 y=−x 2 +75x−636

Solution

The given profit equation is:

y=x2+75x636y = -x^2 + 75x - 636

This is a quadratic equation of the form y=ax2+bx+cy = ax^2 + bx + c, where a=1a = -1, b=75b = 75, and c=636c = -636.

Finding the maximum profit:

Since the coefficient of x2x^2 is negative (a=1a = -1), the parabola opens downwards, meaning there is a maximum point (vertex).

The formula to find the xx-coordinate of the vertex of a parabola y=ax2+bx+cy = ax^2 + bx + c is:

x=b2ax = \frac{-b}{2a}

Substitute a=1a = -1 and b=75b = 75:

x=752(1)=752=37.5x = \frac{-75}{2(-1)} = \frac{75}{2} = 37.5

Now that we have the xx-coordinate of the vertex, we can substitute x=37.5x = 37.5 into the original equation to find the maximum profit:

y=(37.5)2+75(37.5)636y = -(37.5)^2 + 75(37.5) - 636

Let's compute this.The maximum profit the company can make is approximately $770.

Would you like further details or have any questions? Here are some related questions:

  1. How do changes in the coefficients of a quadratic equation affect its graph?
  2. What is the significance of the vertex in a quadratic function in terms of real-world applications?
  3. How do we interpret the maximum or minimum point in a quadratic profit model?
  4. Can there be cases where a company doesn't make any profit according to such models?
  5. What is the relationship between the vertex and axis of symmetry in parabolas?

Tip: The vertex formula b2a\frac{-b}{2a} is essential for finding maximum or minimum values in quadratic functions!

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Equations
Profit Maximization

Formulas

Quadratic equation: y = ax^2 + bx + c
Vertex formula: x = -b / (2a)

Theorems

Quadratic function vertex theorem

Suitable Grade Level

Grades 9-12