Company produces and sells consumer product

Reference no: EM13858749

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is

p=\$35 + 2800/D - 4900/D^2, for D>1.

Where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is \$1,100 per month ad the variable cost (cv) is \$45 per unit.

What is the number of units that should be produced and sold each month to maximize its profit?

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