Question

a computer company can sell 1000 computers if they price them at $500. The number sold will increase by 10 for every 1$ decrease in the price. The company has fixed cost of $100,000, and each computer costs $300 to produce. Find the price that will maximize the company's profit. How many computers will sell at this price?

Answer 1

let the number of $1 decreases be n
number sold = 1000 + 10n
price of each = 500 - n

profit = (1000 + 10n)(500-n) - 300(1000+10n) - 100000

expand this mess, differentiate it , then set that equal to zero

Answer 2

$102.00