The manager at Soul Walk Inc., a shoe manufacturing company, wants to set a new price (P)for a shoe model to maximize total profit.The demand (D)as a function of price is represented as:
D = 1,500 - 2.5P
The total cost (C)as a function of demand is represented as:
C = 3,200 + 3.5D
Which of the following is a model for total profit as a function of price?
A) (1,491.25 × price)- (2.5 × price²)- 8,450
B) (3.5 × price²)+ 3,200 - (1925.50 × price)
C) (1,250 × price)+ (5 × price²)- 8,320
D)[4521 + (4.5 × price)] × price - 9684.25

Question

Quizplus · Accepted Answer

To find the profit function, we need to express profit as revenue minus cost. Revenue is price times demand (P * D), and cost is given as a function of demand. Substitute D = 1,500 - 2.5P into both revenue and cost functions, and simplify to get the profit function.

The Manager at Soul Walk Inc