tions: Answer the following problems. Show your solutions on aparate
sheet of paper.
.
1. Consider this Revenue-Advertising Expense situation.
A drugstore that sells a certain brand of vitamin capsule estimates that
the profit P (in pesos) is given by P = -50x + 2400x7 - 2000, 0S S 32
where x is the amount spent on advertising in thousands of pesos). An
advertising agency provides four (4) different advertising packages with
costs listed below. Which of these packages will yield the highest revenue
for the company?
A. Package A: Php 8,000.00
B. Package B: Php 16,000.00
C. Package C: Php 32,000.00
D. Package D: Php 48,000.00
2. A car manufacturer determines that its profit
Answers
Given : A drugstore that sells a certain brand of vitamin capsule
profit P (in pesos) is given by P = -50x³ + 2400x7² - 2000, 0 ≤ x ≤ 32
x is the amount spent on advertising in thousands of pesos
To Find : Which of these packages will yield the highest revenue
for the company?
A. Package A: Php 8,000.00
B. Package B: Php 16,000.00
C. Package C: Php 32,000.00
D. Package D: Php 48,000.00
Solution:
Revenue = Profit + Advertising cost
Profit = -50x³ + 2400x² - 2000
Revenue R = -50x³ + 2400x² - 2000 + x
x is in thousands Hence
Package A8000 , x = 8 ,
Package B 16000 , x = 16 ,
Package C 32000 x = 32 ,
Package D , 48000 , x = 48
Substituting values
x R = -50x³ + 2400x² - 2000 + x
8 126008
16 407616
32 817232
48 -1952
32000 Package C will yield the highest revenue for the company
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