1/ Revenue, Cost, and Profit

Yaster Electronics manufactures and sells x televisions per month. The cost and revenue in dollars are given by C(x)= 73,962 + 60 x and R(x)= 189 x - 0.032 x2.

Use differential approximations to estimate the change in profit if production level is increased from 1,500 to 1,590. Round to the nearest dollar.

$

NOTE: Your answer might be negative.

2/ Marginal Profit

Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates:

• a weekly demand of 302 at a price of $14 per toaster
• a weekly demand of 208 at a price of $17 per toaster

The financial department estimates that weekly fixed costs will be $1,363 and variable costs (cost per unit) will be $4.

Assume:

• the relationship between price and demand is linear
• the cost function in linear

Use your models to predict the marginal profit when Yaster is producing and selling 253 toasters per week. Round to the nearest cent.

$ per toaster