Question

A company manufacturers and sells x electric drills per month. The monthly cost and price-demand equations are C(x)=74000+70x,

p=220−(x/30) ,0≤x≤5000.

(A) Find the production level that results in the maximum revenue.

(B) Find the price that the company should charge for each drill in order to maximize profit.

(C) Suppose that a 5 dollar per drill tax is imposed. Determine the number of drills that should be produced and sold in order to maximize profit under these new circumstances.