Sal T. Underwood sat at a booth in the local coffee shop. He was very upset. Sal made the best pretzels in town, but h

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Sal T. Underwood sat at a booth in the local coffee shop.
He was very upset. Sal made the best pretzels in town, but
his company just wasn't making a profit. Sal had a friend,
Emma, who was a statistician. He had given Emma some of his
sales numbers and some of the cost figures. She ran a
regression analysis to determine the revenue and cost
functions. Her analysis concluded that:
Sal knew that his profit was found by subtracting his costs from
the revenue, and he remembered how to combine like terms from his
Algebra days…a LONG time ago! So, he calculated
his Profit Function to be:
P(x)
= R(x) – C(x) = -0.002 x2 +2x – 200
- (0.4x + 150)
= -0.002 x2 +2x – 200 - 0.4x –
150
= -0.002 x2 +1.6 x – 350 but he had no
idea what it meant.
He pulled out his cell phone and called Emma to see if she was
on her way. Before he even pressed the "call' button, Emma
was standing there with her new assistant ready to explain to Sal
how he could maximize his profit.
1. How many pretzels must he sell to maximize his profit?
2. What is his maximum profit?
3.. What do you think Emma's advice was to Sal? Explain
with facts.