Discussion:
Q: The monthly revenue achieved by selling x boxes of candy is figured to be x(5 - 0.05x) dollars. The wholesale cost of each box of candy is $1.50.
a) How many boxes must be sold each month to achieve a profit of at least $60?
b) Using a graph in utility, graph the revenue function.
c) What is the maximum revenue that this firm could earn?
d) How many boxes of candy should the firm sell to maximize revenue?
e) Using a graphing utility, graph the profit function.
f) What is the maximum profit that this firm can earn?
g) How many boxes of candy should the firm sell to maximize profit?
h) Provide a reasonable explanation as to why the answers found in parts (d) and (g) differ. Is the shape of the revenue function reasonable in your opinion?Why?