Question

A company specializing in a mail-order sales approach is promotional

campaign. Advertising expenditure will cost the firm $5,950 per day. Marketing specialist estimate that the rate at which profit (exclusive of advertisement cost) will be generated from the promotion campaign decrease over the length of the campaign. Specially, the rate r(t) for this campaign is estimated by the function:
R(t) = -50 + 10.000
Where t represent the day of the campaign and r(t) is measured is dollars per day. In order to maximize net profit, the firm should conduct the campaign as long as r(t) exceeds the daily advertisement cost.
A)    Graph the function r(t) and the function c(t)= 5,950, which describe the rate at which advertising expenses are incurred.
B)     How long the campaign should be conducted?
C)     What are total advertising expenditure expected to equal during the campaign?
D)    What net profit will be expected?

Answer rating: 100% (QA)

rt 50t 2 10000 a Graph is attached b To maximize profit rt x t 5950t 50t 2 1... View the full answer