Saturday, April 5, 2014

What is the number of orders needed to produce maximum profit from the equation ?

I would like to add to the above answer. One can use basic calculus, to be specific the use of basic differentiation: 


 (Applying basic differentiation) 


In order to find the maximum make 



Now solve for x:




Now substitute the answer  into the original equation to find the maximum profit : 



I would like to add to the above answer. One can use basic calculus, to be specific the use of basic differentiation: 


 (Applying basic differentiation) 


In order to find the maximum make 



Now solve for x:




Now substitute the answer  into the original equation to find the maximum profit : 




SUMMARY: 


(Calculus is another simple way to solve problems when determining a question asking for the maximum. Only use calculus if you are familiar with it, otherwise use the methods as stated in the previous answer.)


  • When finding the maximum, first differentiate with respect to the independent variable, many times will be x, then make it equal to zero and solve. 

  • Answer: x = 625 maximum profit P(625) = 119 025


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