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Business Math Class Presentation

The document discusses maximizing profit for a company that manufactures mobile phones. It provides the revenue, cost and profit equations and uses various mathematical methods like completing the square, spreadsheet analysis, graphical method and differentiation to find that maximum profit of $112,500 occurs when production is at 1800 units.

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Abigael Lin
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34 views12 pages

Business Math Class Presentation

The document discusses maximizing profit for a company that manufactures mobile phones. It provides the revenue, cost and profit equations and uses various mathematical methods like completing the square, spreadsheet analysis, graphical method and differentiation to find that maximum profit of $112,500 occurs when production is at 1800 units.

Uploaded by

Abigael Lin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Database Marketing

• Use of online reviews in marketing strategy


• Positive reviews --> Increase sales
• Going beyond valence of review
THE PROBLEM
Company A manufactures mobile phones and obtains:

1
Profit  ( x  1800) 2  112500
20
1 2
Revenue 
20
x  49500

x = number of mobile phones in thousands

0 < x < 2100


THE COST
in terms of x
Cost = Revenue – Profit
 

  1 2
∴𝐶 = 𝑥 −180 𝜒 +99000
10
MAX PROFIT
and the corresponding
number s
Cost = Revenue – Profit
When x = 1000 units
1
P   (1000  1800) 2  112500
20
P  32000  112500
P  80500 C  99500  80500
C  19000
1
R (1000) 2  49500
20
R  50000  49500
R  99500
THE SPREADSHEET
x(units) Revenue($) Cost($) Profit($)
1000 99500 19000 80500
1100 110000 22000 88000
1200 121500 27000 94500
1300 134000 34000 100000
1400 147500 43000 104500
1500 162000 54000 108000
1600 177500 67000 110500
1700 194000 82000 112000
1800 211500 99000 112500
1900 230000 118000 112000
2000 249500 139000 110500
2100 270000 162000 108000
COMPLETING THE SQUARE

1
Profit 
20
( x  1800) 2  112500

axis of symmetry vertex


x  1800  0
x  1800

maximum profit is at vertex,112 500


When x=1800
GRAPHICAL METHOD
300000

250000

200000

150000
Revenue($)
Cost($)
100000 Profit($)

Intersection point is the max


50000 profit, 112 500, when
x=1800
0
000 100 200 300 400 500 600 700 800 900 000 100
1 1 1 1 1 1 1 1 1 1 2 2
DIFFERENTIATION
1 Expand
1
Profit  ( x  1800) 2  112500
20
1
  ( x 2  3600 x  3240000)  112500
20
1 2
 x  180 x  162000  112500
20
1 2
 x  180 x  49500
20

2 Differentiate
dp 1
  x  180
dx 10
DIFFERENTIATION
1
x  180  0
3 At max point, 10
1
dp x  180
0 10
dx x  1800

Substitute x into
4
profit equation
1
P  (1800  1800) 2  112500
When x=1800 20
 112500
CONCLUSION
The methods used
include completing the square,
spread sheet, graphical method
and differentiation. All of them
produce the similar and
accurate results. Hence, our
investigation is successful .

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