A manufacturer is planning to sell a new product at the price of $230 per unit and estimates that if x thousand dollars is spent on development and y thousand dollars is spent on promotion,approximately $\frac { 340 y } { y + 7 } + \frac { 170 x } { x + 14 }$ units of the product will be sold.The cost of manufacturing the product is $160 per unit.If the manufacturer has a total of $340,000 to spend on development and promotion,how should this money be allocated to generate the largest possible profit? [Hint: Profit equals (number of units)(price per unit minus cost per unit)minus total amount spent on development and promotion.]
A)$173,500 on development,$167,000 on promotion
B)$167,000 on development,$173,000 on promotion
C)$166,500 on development,$173,500 on promotion
D)$173,000 on development,$167,000 on promotion

Question

Quizplus · Accepted Answer

The profit is maximized when the allocation is $166,500 on development and $173,500 on promotion, as this allocation maximizes the number of units sold while considering the constraints and costs.

A Manufacturer Is Planning to Sell a New Product at the Price