1. Questions

Calculus

A company offers the following schedule of charges: $30 per thousand for orders of 50,000 or less with the charge per thousand decreased by 37.5 cents for each thousand above 50,000. Find the order which will make the company's receipts a maximum?

How do you solve it?

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
A company offers the following schedule of charges

  1. right now:
    cost per thousand = 30
    orders = 50 000

    for every increase of 1000 orders, cost decreases by .375

    net the number of 1000 increases be n
    cost per thousand = 30 - .275n
    orders = 50,000 + 1000n

    receipts = (30-.375n)(50000 + 1000n)
    = 1,500,000 + 30,000n - 18750n - 375n^2
    = -375n^2 + 11250n +1500000
    d(receipts)/dn = -750n + 11250
    = 0 for a max of receipts
    750n = 11250
    n = 15

    for a max recepts
    number should be 50000+1000(15) = 65000
    cost per thousand = 30 - .375(15) = $24.375

    testing:
    for the above answer :
    receipts = 65000(24.375) = 1, 584,375

    take n = 14
    number = 64000
    cost = 30-.375(14) = $24.75
    receipts = 64000(24.75) = 1, 584,000 , ahh a bit less

    take n = 16
    number = 66000
    cost = 30-.375(16) = $24
    receipts = 66000(14) = 1,584,000 , again a bit less

    My answer is correct.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    Reiny

  2. what is the final answer?

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    angela

Respond to this Question

First Name

Your Response

Similar Questions

  1. mathematics

    An airline has 82% of its flights to par on schedule it has 65% of its flights departing arrive on schedule find the probability that a flight departs on the schedule also arrives on schedule round the answer to two decimal places

  2. math

    Ivanna is going to rent a truck for one day. There are two companies she can choose from, and they have the following prices. Company A charges 114 and allows unlimited mileage. Company B has an initial fee of 65 and charges an

  3. Algebra- is my answer right

    Charlie is going to rent a truck for one day. There are two companies he can choose from, and they have the following prices. Company A charges $127 and allows unlimited mileage. Company B has an initial fee of $55.00 and charges

  4. Algebra

    Deshaun is going to rent a truck for one day. There are two companies he can choose from, and they have the following prices. Company A charges $118 and allows unlimited mileage. Company B has an initial fee of $55 and charges an

  1. Algebra1 Math

    A moving company charges $800 plus $16 per hour. Another moving company charges $720 plus $21 per hour. How long is job that costs the same no matter which company is used?

  2. Accounting

    The Clydesdale Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%. What is Clydesdale Company's profit

  3. algebra

    last one !! please help? Salma is going to rent a truck for one day. There are two companies she can choose from, and they have the following prices. Company A charges $120 and allows unlimited mileage. Company B has an initial

  4. math

    Steven is moving to another city next weekend and wants to rent a moving truck. The rental rates for two companies in his area are shown below. Each company charges an initial fee for renting the truck, plus an additional amount

  1. math

    Julia is offered a job selling advertising for two different companies. Company A offers a base salary of $30,000 per year plus a year-end bonus equal to 3% of her total sales. Company B offers a base salary of $25,000 per year

  2. math

    A salesperson has two job offers. Company A offers a weekly salary of $150 plus commission of 6% of sales. Company B offers a weekly salary of $300 plus commission of 3% of sales. What is the amount of sales above which Company

  3. mathematics

    Ashley is going to rent a truck for one day. there are two companies she can choose from, and they have the following prices. Company A charges $124 and allows unlimited mileage Company b has an initial fee of $75 and charges an

  4. Accounting

    O' Hara Company began operations on December 1, 2011. Presented below is selected information related to O' Hara Company at December 31, 2011. Office Equipment ₤ 40,000; Utilities Expense ₤ 6,000; Cash 14,000; Accounts

View more similar questions or ask a new question.