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Please help Hines Foods wants to optimize the marketing campaign for a new product, Tomato Sauce Deluxe. If x dollars are spent on marketing for
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Hines Foods wants to optimize the marketing campaign for a new product, Tomato Sauce Deluxe. If x dollars are spent on marketing for this new product, then the expected number of cans to be sold is a ln(x) where a is a positive constant (they don't want to reveal data related to their sales, so a is not given to us). They have already committed to spend at least $1 on marketing, i.e., we need to consider the case of x1 only. Each can sells for $0.45, and incurs $0.25 in cost (production and shipping). Therefore, the total profit for Hines Foods is the total revenue minus the total production and shipping costs and the marketing cost. How much should Hines spend on promotion in order to maximize total profit? 1. Write down the objective function f(x) for this problem. 2. Use the derivative f(x) and second derivative f(x) to determine the optimal solutionStep by Step Solution
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