Posted by Julie on .
Phillip, the proprietor of a vineyard, estimates that the first 9600 bottles of wine produced this season will fetch a profit of $5 per bottle. However, the profit from each bottle beyond 9600 drops by $0.0002 for each additional bottle sold. Assuming at least 9600 bottles of wine are produced and sold, what is the maximum profit? (Round your answer correct to the nearest cent.)
What would be the profit/bottle in this case? (Round the number of bottles down to the nearest whole bottle. Round your answer correct to the nearest cent.)
Here's a start - not sure about the formula. Repost so someone answeres. $0.0002 x = $5 --> You can produce the original 9,600 bottles and an additional 25,000 before your profit deminishes to zero. Not sure what the formula would be to calculate the total value - you can't numerate for 9600 bottles...that's insane. So you would get an initial (9,600 x $5) then add on for each additional bottle produced +(1 x $4.9998) + (1 x $4.9996)....not sure how you would do this. Then, assume there are 12 bottles/case so (9600+25,000) / 12 = no. of cases. Then get your cost from the 1st part and divide by the number of cases.