The manager at Zip Zoom Inc., a motorcycle engine manufacturing company, wants t

Question

The manager at Zip Zoom Inc., a motorcycle engine manufacturing company, wants to set a new price (P) for a model to maximize total profit.

The demand (D) as a function of price is represented as: D = 1500 - 2.5P

The total cost (C) as a function of demand is represented as: C = 3200 + 3.5D

Which of the following is a model for total profit as a function of price?

(1508.75 * price) - (2.5 * price2) - 8450

(3.5 * price2) + 3200 - (1925.50 * price)

(1250 * price) - (5 * price2) - 8320

[ 4521 + (4.5 * price)] * price - 9684.25

(1508.75 * price) - (2.5 * price2) - 8450

(3.5 * price2) + 3200 - (1925.50 * price)

(1250 * price) - (5 * price2) - 8320

[ 4521 + (4.5 * price)] * price - 9684.25

Explanation / Answer

Revenue = Demand * P

Revenue = (1500 - 2.5P) * P

Profit = Revenue - Cost

Profit = 1500P - 2.5P^2 - 3200 - 3.5*(1500 - 2.5P)

Profit = 1500P - 2.5P^2 - 3200 - 5250 + 8.75P

Profit = 1508.75P - 2.5P^2 - 8450

A option

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