Download Maximum profit activity

Maximum profit activities
1. To calculate the profit in business we find the total income and subtract the
manufacturing cost. A manufacturing company sells its products for $14 each
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item and the manufacturing cost is given by the equation m(x) = x +13 where
x is the number of products sold (in thousands).
Use tables, pictures (graphs) and numbers (algebra) to find how many items the
company needs to sell to achieve a maximum profit.
2. Many times business will raise the prices of their goods or services to increase
their profit. However, when they raise their prices, they usually lose some
customers. In such situations, the price at which the “maximum” profit occurs
needs to be found.
An auditorium has seats for 1200 people. For the past several days, the
auditorium has been filled to capacity for each show. Tickets currently cost $5.00
and the owner wants to increase the ticket prices. He estimates that for each
$0.50 increase in price, 100 fewer people will attend. What ticket price will
maximize the profit?
Use tables, pictures (graphs) and numbers (algebra) to find how many tickets the
auditorium needs to sell to achieve a maximum profit.