Light Bulb
A look at what is currently available on eBay
What price should the manufacturer sell each light bulb to make the maximum profit each month?
A manufacturer has been selling light bulbs for $2.00 each. At his price, people have benn buying 1,000 bulbs per month. The manufacturer has caculated that for every $1.00 increase per bulb, 40 fewer bulbs will be sold each month. It costs the manufacturer $0.60 to make each light bulb. Assume the manufacturer sells every light bulb that it makes and that any whole number of light bulbs can be made.
1000 @ 1.40 profit = $1400
960 @ 2.40 profit = $2304
920 @ 3.40 profit = $3128
880 @ 4.40 profit = $3872
840 @ 5.40 profit = $4536
800 @ 6.40 profit = $5120
760 @ 7.40 profit = $5624
720 @ 8.40 profit = $6048
680 @ 9.40 profit = $6392
640 @ 10.40 profit = $6656
600 @ 11.40 profit = $6840
560 @ 12.40 profit = $6944
520 @ 13.40 profit = $6968
480 @ 14.40 profit = $6912
Therefore they should sell 520 bulbs at $14 per bulb, making a profit of $6968/month.
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January 27th, 2007 in
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