Introduction to Management Science 12th Edition by Bernard Taylor

تمرين 3

The Rolling Creek Textile Mill makes denim. The monthly fixed cost is $8,000, and the variable cost per yard of denim is $0.35. Price is related to demand, according to the following linear equation:
v = 17,000 - 5,666 p
Develop the nonlinear profit function for the textile mill and determine the optimal price, the optimal volume, and the maximum profit per month.