Question
upstudy study bank question image url

The annual total revenue for a product is given by \( R(x)=45,000 x-5 x^{2} \) dollars, where \( x \) is the number of units sold. To maximize revenue, how many units must be sold? What is the maximum possible annual revenue? To maximize revenue, \( \square \) units must be sold. (Simplify your answer.)

Ask by Wyatt Christensen. in the United States
Jan 24,2025

Real Tutor Solution

Tutor-Verified Answer

Answer

To maximize revenue, **4,500 units** must be sold, and the **maximum possible annual revenue** is **\$101,250,000**.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Reviewed and approved by the UpStudy tutoring team

Beyond the Answer

To maximize revenue, we need to find the value of \( x \) that maximizes the function \( R(x) = 45,000x - 5x^2 \). This is a quadratic function and opens downwards (since the coefficient of \( x^2 \) is negative), so its maximum occurs at the vertex. The vertex \( x \) can be found using the formula \( x = -\frac{b}{2a} \), where \( a = -5 \) and \( b = 45,000 \). Plugging in the values, we get: \[ x = -\frac{45,000}{2 \cdot (-5)} = \frac{45,000}{10} = 4,500 \] To find the maximum possible annual revenue, substitute \( x = 4,500 \) back into the revenue function: \[ R(4,500) = 45,000 \cdot 4,500 - 5 \cdot (4,500)^2 \] Calculating this gives: \[ R(4,500) = 202,500,000 - 101,250,000 = 101,250,000 \] Therefore, to maximize revenue, 4,500 units must be sold, leading to a maximum revenue of $101,250,000.

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy