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20.05.2021 •
Business
At a selling price of sh. 400 per unit, the expected sales of a product would be 10000 units, but sales would fall to 8000 units if the selling price roses to sh. 500. The demand function is estimated to be a linear model. The total cost function is c(x) =15000+18x where x is number of units. i) Determine the total profit function (ii) Determine the unit sales and price which will maximize profit and calculate the maximum profit.
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