the equation below is an approximation to the total profit (in thousands of dollars) from the sale of x…

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 + 27/2x² - 60x + 100, x≥5 a. 400,000 b. 550,000 c. 450,000 d. 500,000

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 + 27/2x² - 60x + 100, x≥5 a. 400,000 b. 550,000 c. 450,000 d. 500,000

Answer

Explanation:

Step1: Find the derivative

Differentiate $P(x)=-x^{3}+\frac{27}{2}x^{2}-60x + 100$ using power - rule. $P'(x)=-3x^{2}+27x - 60$.

Step2: Set derivative equal to 0

Solve $-3x^{2}+27x - 60 = 0$. Divide through by - 3: $x^{2}-9x + 20=0$.

Step3: Factor the quadratic

Factor $x^{2}-9x + 20$ to get $(x - 4)(x - 5)=0$. So $x = 4$ or $x = 5$. But since $x\geq5$, we discard $x = 4$.

Step4: Check the second - derivative

Differentiate $P'(x)$ to get $P''(x)=-6x + 27$. When $x = 5$, $P''(5)=-6\times5+27=-3<0$, so $x = 5$ is a maximum.

Answer:

Since $x$ is in hundreds of thousands of tires, the number of tires is $5\times100000 = 500000$, so D. 500,000.