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Digital SAT
Digital SAT Mathematics - Calculator Section

Profit Maximization in Production

Very Hard Functions And Modeling Linear, Quadratic, And Exponential Models

A factory produces a certain product with costs and revenues modeled by linear functions. The cost function, C(x), in dollars is given by:

$$C(x) = 100 + 5x$$

where x is the number of units produced. The revenue function, R(x), in dollars is given by:

$$R(x) = 12x$$

where x is the same variable from the cost function. The factory aims to maximize its profit.

The profit function, P(x), can be expressed as:

$$P(x) = R(x) - C(x)$$

Calculate the production level x* (the number of units produced) at which the profit becomes zero. Enter your answer as a decimal in the grid below.

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