Note: This Problem Requires Excel

question 12

Multiple Choice

Note: This problem requires Excel.
You have noticed that paying higher wages attracts more productive employees. However, you are concerned that there may be a limit to this relationship. Some experimentation has convinced you that the relationship between wages paid (x) and profits can be modelled by the equation Profit = 25x − 0.1x2 + 200. Use a Nonlinear Solver tool to determine the level of wages that will maximize profits.

• A) 25
• B) 50
• C) 75
• D) 100
• E) 125

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