Question

A company can produce a toy bear at a cost of $5 per bear. When the company sells the bears at a price of $22, they can sell 480 bears each week. It is estimated that for every $0.50 decrease in the price, they can sell 20 more bears.

Find the price that will maximize the profit for the company.

i don;t know how i got 17.12...but it is wrong
]many thanks

Answer 1

So, if you don't know how you got 17.12, were you just guessing? Why not show your work?

if there are x price increases, then revenue is
(22 - x/2)(480+20x)
and the cost is 5(480+2x)
so profit is
(22 - x/2 - 5)(480+2x) = -x^2 - 206x + 8160
Hmmm. This has a maximum at x = -103
Check my math - where did I go wrong?