A game developer has been allotted $200,000 to spend on the development and prom

Question

A game developer has been allotted $200,000 to spend on the development and promotion of a new computer game. It is estimated that if x thousand dollars is spent on development and y thousand on promotion, approximately f (x, y) = 90x4/3y copies of the game will be sold. The game developer needs your help to decide:

(a) How much money (out of $200,000) should he allocate to development and how much to

promotion in order to maximize sales?

(b) How many copies of the game will sell when the sales are maximum?

(c) What is the maximum revenue, if a game is sold for $69.99?

(d) In the last minute the company approves additional $10,000, but it can be used only in one

category, development or promotion. Decide which category will yield higher profit with the

additional $10,000.

Explanation / Answer

A game developer has been allotted $200,000 to spend on the development and prom

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