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Step-by-step explanation:
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R(x) = 11x - 0.025x^2
Revenue is maximum when dr(x)/dx = 0
dr(x)/dx = 11 - 0.05x = 0
0.05x = 11
x = 11/0.05 = 220
The revenue will be maximum when 220000 toys are produced.
r(220) = 11(220) - 0.025(220)^2 = 2,420 - 1,210 = 1,210
Therefore, maximum revenue = $1210000