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A company has determined that the demand function for a certain couch is given by s= 26000.6x, where s is the selling price per couch,
A company has determined that the demand function for a certain couch is given by s= 26000.6x, where s is the selling price per couch, and x is the number of couches sold. The costs associated with producing a line of couches include a fixed cost of $670,000, plus each couch costs $330 to make. A) What is the revenue function R(x) ? [Revenue = (\# of items sold) *(price per item)] B) What is the cost function C(x) to produce x couches? c) What is the profit function P(x) ? [Profit = Revenue - Cost ] D) How many couches should be manufactured and sold in order to maximize profit. What is that maximum profit? You may show your work either graphically or Algebraically. [NOTE: Any evidence of Calculus in your answer will result in an automatic score of 0]
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