An air conditioner outlet finds that if it sells x air conditioners per month, its costs will be C (x) = 220x + 202, 500 and its revenue will be R (x) = 3x2 +2020x (both in dollars). %3D You must show your work for full credit on this problem. a. Find the outlet's break-even points. b. Find the number of air conditioners the outlet should sell to maximize profit, and the maximum profit. Recall that Profit = Revenue Costs. c. Explain the method you used to determine the number of air conditioners.
An air conditioner outlet finds that if it sells x air conditioners per month, its costs will be C (x) = 220x + 202, 500 and its revenue will be R (x) = 3x2 +2020x (both in dollars). %3D You must show your work for full credit on this problem. a. Find the outlet's break-even points. b. Find the number of air conditioners the outlet should sell to maximize profit, and the maximum profit. Recall that Profit = Revenue Costs. c. Explain the method you used to determine the number of air conditioners.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.1IP
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