Solve the Problem $$p = - \frac { 1 } { 6 } x + 200 , \quad 0 \leq x \leq 1,200$$

question 169

Multiple Choice

Solve the problem.
-The price p and the quantity x sold of a certain product obey the demand equation $$p = - \frac { 1 } { 6 } x + 200 , \quad 0 \leq x \leq 1,200$$ What quantity x maximizes revenue? What is the maximum revenue?

• A) 600; $60,000
• B) 900; $45,000
• C) 300; $45,000
• D) 1,200; $60,000

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Definitions:

Period Cost

Any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A non-manufacturing cost that is expensed in the period in which it is incurred.

Special Order

A special order refers to a one-time or unusual request from a customer that can require unique production or ordering requirements outside of normal operations.

Product Costs

Costs directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Current Profits

The earnings a company has generated during a particular period, not taking into account future liabilities or investments.