Question

A company that sells toys models their profit with the function

Answer 1

9514 1404 393

Answer:

  a) profit has a typical curve: negative at low volume, and again at very high volume.

  b) $239,407

Step-by-step explanation:

a) The graph is negative below x=1.58, so the break-even point is 158 toys sold. The profit declines steeply above 533 toys sold, to again go negative for 774 toys sold. This sort of curve seems fairly typical.

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b) The profit is a maximum of $239,407 when 533 toys are sold.