Find the number of units sold that yields a maximum revenue for a company that produces health food supplements. The total revenue R (in dollars) is given by
R= 900x - 0.1x^2
where x is the number of units sold?
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Verified answer
How were you taught to solve this? It can be solved several different ways, and which way depends on whether this is an algebra class or a calculus class.
The best way is probably:
R(x) = 900x - .1x^2
R'(x) = 900 - .2x
The revenue is maximum where the slope is zero, so:
0 = 900 - .2x
.2x = 900
x=4500
You may have also learned that the maximum of a parabola is -B/2A. To do it that way:
R = -.1x^2 + 900x + 0
A = -.1
B = 900
C = 0
-B/2A = -900 / -.2 = 450
So the answer is 450.