A Manufacturer Is Planning to Sell a New Product at the Price

Multiple Choice

A manufacturer is planning to sell a new product at the price of $260 per unit and estimates that if x thousand dollars is spent on development and y thousand dollars is spent on promotion, approximately $\frac { 360 y } { y + 7 } + \frac { 180 x } { x + 14 }$ units of the product will be sold. The cost of manufacturing the product is $200 per unit. If the manufacturer has a total of $360,000 to spend on development and promotion, how should this money be allocated to generate the largest possible profit? [Hint: Profit equals (number of units) (price per unit minus cost per unit) minus total amount spent on development and promotion.]

A) $177,000 on development, $183,000 on promotion
B) $183,000 on development, $177,000 on promotion
C) $183,500 on development, $177,000 on promotion
D) $176,500 on development, $183,500 on promotion