Answer:
In order to maximize profit, each widget should sell for $26.70.
Step-by-step explanation:
The total amount of profit y given by the selling price of each widget x is given by:
[tex]y=-15x^2+801x-5900[/tex]
And we want to determine the price of each widget such that is yields the maximum profit.
Since the equation is a quadratic, the maximum profit will occur at the vertex of our parabola.
The vertex of a quadratic is given by:
[tex]\displaystyle \left(-\frac{b}{2a},f\left(-\frac{b}{2a}\right)\right)[/tex]
So, let's find the vertex. In our equation, a = -15, b = 801, and c = -5900.
Therefore, the price that maximizes profit is:
[tex]\displaystyle x=-\frac{801}{2(-15)}=\$26.70[/tex]
Therefore, in order to maximize profit, each widget should sell for $26.70.
Notes:
Then substituting this back into the equation, the maximum profit is:
[tex]y_{\text{max}}=-15(26.7)^2+801(26.7)-5900=\$ 4793.35[/tex]
