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A company produces a special new type of TV. The company has fixed costs of $459,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2000. Assume a linear demand. What price should the company charge to earn a profit of $1,041,000? It would need to charge S (Round answer to nearest dollar. If more than one answer, separate with a comma.)

A company produces a special new type of TV. The company has fixed costs of $459,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2000. Assume a linear demand. What price should the company charge to earn a profit of $1,041,000? It would need to charge S (Round answer to nearest dollar. If more than one answer, separate with a comma.)

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
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A company produces a special new type of TV. The company has fixed costs of $459,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2000. Assume a linear demand. What price should the company charge to earn a profit of $1,041,000? It would need to charge $ (Round answer to nearest dollar. If more than one answer, separate with a comma.)
Transcribed Image Text:A company produces a special new type of TV. The company has fixed costs of $459,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2000. Assume a linear demand. What price should the company charge to earn a profit of $1,041,000? It would need to charge $ (Round answer to nearest dollar. If more than one answer, separate with a comma.)
Expert Solution
Step 1
  • Fixed cost of company: $459000
  • Cost of production of each TV=$1000
  • Selling price of each TV when 850 units are sold=$2300                        -Equation(1)
  • Selling price of each TV when 800 units are sold=$2000                        -Equation(2)
  • To find the selling price of each TV to earn a profit $1041000
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