Profit Calculations for Computer Accessories

What other number of accessories produced yields approximately the same profit?

Given the price equation, manufacturing cost, current production, and profit generated, what is the other number of accessories that can yield a profit similar to $100 million?

Answer:

The other number of accessories that the company produced, which yields approximately the same profit, is A. 1.45 million.

Data and Calculations:

Price for the computer accessory = 100 - 10x^2

Manufacturing cost = $10

Current production = 2 million

Profit generated based on 2 million accessories = $100 million dollars

To find the number of accessories that yields a similar profit, we can use a trial and error method. By replacing x with 1.45 million in the profit calculation equation, we can determine that producing 1.45 million accessories will result in a profit of $100 million, similar to the profit generated by producing 2 million accessories.

By understanding the profit function and its relation to production or sales quantity, companies can optimize their output to maximize profitability.