Problem

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The equation below is an approximation to the total profit (in thousands of dollars) from the sale of x hundred thousand tires. Find the number of tires that must be sold to maximize profit.
P(x)=x3+272x260x+100,x5
A. 450,000
B. 550,000
C. 500,000
D. 400,000

Answer

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Answer

500,000 is the number of tires that must be sold to maximize profit.

Steps

Step 1 :Find the derivative of the function P(x)=x3+272x260x+100, which is P(x)=3x2+27x60.

Step 2 :Set P(x) equal to zero to get the equation 3x2+27x60=0.

Step 3 :Simplify this equation by dividing all terms by -3, which gives x29x+20=0.

Step 4 :Factor the equation to get (x4)(x5)=0.

Step 5 :Setting each factor equal to zero gives x=4 and x=5.

Step 6 :Discard x=4 because the problem states that x5.

Step 7 :Therefore, the number of tires that must be sold to maximize profit is x=5 hundred thousand, or 500,000 tires.

Step 8 :Take the second derivative of P(x), which is P(x)=6x+27.

Step 9 :Substitute x=5 into P(x) to get 65+27=3, which is less than zero, confirming that x=5 is a maximum point of the function.

Step 10 :500,000 is the number of tires that must be sold to maximize profit.

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