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 what price the widgets should be sold for, to the nearest cent, for the company to make the maximum profit. y, equals, minus, 5, x, squared, plus, 209, x, minus, 1090 y=−5x 2 +209x−1090
Solution
The given equation for the company's profit, , as a function of the selling price of each widget, , is:
This is a quadratic equation of the form , where:
Finding the Price for Maximum Profit:
For a quadratic equation, the maximum (or minimum) value occurs at the vertex. Since (i.e., ), the parabola opens downwards, meaning there is a maximum profit at the vertex.
The formula for the -coordinate of the vertex is:
Substitute the values of and into this formula:
Thus, the price per widget that maximizes profit is $20.90.
Conclusion:
The company should sell the widgets for $20.90 to maximize its profit.
Would you like further details or any clarification?
Here are 5 related questions to deepen your understanding:
- What is the maximum profit the company can make?
- How would the profit change if the selling price is increased beyond $20.90?
- What happens to the profit if the company decreases the price to $15?
- How would the result change if the coefficient of were different?
- Can the company still make a profit if the price is set at $10?
Tip: In any quadratic profit equation, when the coefficient of is negative, the maximum occurs at the vertex!
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Algebra
Quadratic Equations
Profit Maximization
Formulas
Quadratic equation in the form ax^2 + bx + c = 0
Vertex formula for a quadratic equation x = -b / (2a)
Theorems
Vertex Theorem for Quadratic Functions
Suitable Grade Level
Grades 9-12