Phillip, the proprietor of a vineyard, estimates that the first 9600 bottles of wine produced this season will fetch a profit of $5 per bottle. However, the profit from each bottle beyond 9600 drops by $0.0002 for each additional bottle sold. Assuming at least 9600 bottles of wine are produced and sold, what is the maximum profit? (Round your answer correct to the nearest cent.)
$ ?
What would be the profit/bottle in this case? (Round the number of bottles down to the nearest whole bottle. Round your answer correct to the nearest cent.)
$ ?
1 answer
Here's a start - not sure about the formula. Repost so someone answeres. $0.0002 x = $5 --> You can produce the original 9,600 bottles and an additional 25,000 before your profit deminishes to zero. Not sure what the formula would be to calculate the total value - you can't numerate for 9600 bottles...that's insane. So you would get an initial (9,600 x $5) then add on for each additional bottle produced +(1 x $4.9998) + (1 x $4.9996)....not sure how you would do this. Then, assume there are 12 bottles/case so (9600+25,000) / 12 = no. of cases. Then get your cost from the 1st part and divide by the number of cases.