Exercise 2 The cost of producing one teddy bear is 10 PLN. At the price of...

Exercise 2
The cost of producing one teddy bear is 10 PLN. At the price of 15 PLN per teddy bear the sales volume is 1000 pieces per year. Each time the price is raised by 1 PLN, the sales decrease by 50 pieces.
PROFIT = (FINAL PRICE - PRODUCTION COST) * number of units sold
(a) Determine the formula of the square function describing the annual profit depending on the price x PLN per unit.

b) Set such a price for one teddy bear that the annual profit of the company is the highest. What will be the sales volume and what profit?

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Expert Solution

genius_generous answered 1 year ago

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