Question

A company has determined that its maximum profit occurs when it sells 10,000units per month. For every 1,000 units more or less than 10,000 units that thecompany sells, its profit decreases by $5,000. Which of the following equationscan be used to find the number of units, q, in thousands, for which the profitdecreases $35,000 from the maximum?
A. 10 |q−35| =5
B. 5 |q−10| =35
C. 35 |q−10| =5
D. 5 |q−35| =10

Answer 1

Answer:

B. 5 |q−10| =35

Step-by-step explanation:

Solution:

let's try to understand the problem clearly.

In this question, we asked to calculate the number units which that company produces so that it's profit is decreased from the maximum profit.

We know that, for 10000 units = company will get maximum profit.

Any value less than or greater than 10000 units will decrease the profit.

and we also know that,

For every 1000 units profit is decreased by $5000.

So if maximum profit is at 10000 units,

Then at 9000 units = it will have profit decreased by 5000 from the maximum

if q = 11000 then profit = Maximum - 5000

But we are asked to calculate the profit decrease of $35000 from the maximum.

it means we need 5000 decreased by 7 times = 10000 +  7000 = 17000 units

So, if company produces 17000 units,

profit will be decreased by 5(7000) = 35000

Finally,

B. is the only equation which satisfies this condition.

B.  5 (q-10) = 35

(q-10) = 7

q = 10 + 7 = 17

q = 17000 units

Hence, for 17000 units, company's profit will decrease $35000 from the maximum profit.