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A company has determined that the demand function for a table is, d(s) = 1200 - s, where s is the sale price of a
A company has determined that the demand function for a table is, d(s) = 1200 - s, where s is the sale price of a table and d is the number of tables demanded. The company manufactures tables based on demand d. The fixed cost for the company to manufacture a line of tables is $100,000, and each table demanded costs $200 to make. Show all work to receive full credit. a) Determine a formula for R(s), the revenue the company can make as a function of the sale price s. (2pt) b) Determine the function for P(s), the profit the company can make as a function of the sale price s. (3pt) Tip 1: profit = revenue - cost Tip 2: to find the cost, first write it as a function of the demand, C(d). Then, compose C(d) with d(s) to find C(s). c) What sale price should be set in order to maximize profit? (3pt)
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