A newly established clothing shop analyzed their monthly profit compared to the amount spent on advertising each month. The following graph shows the relationship between the profit generated by the shop each month, in hundreds of dollars, and the amount of money spent on advertising each month, in hundreds of dollars.
Use the graph to complete each statement about this situation.
The maximum possible monthly profit of the shop is about $___
The interval over which the shop makes a profit is (___ , ___)
The maximum profit is earned when $___ is spent on advertising.
The maximum profit is the highest point on the curve at (3, 45), and since the y-value is the profit in hundreds of dollars, the maximum profit is $4500. The shop is making a profit as long as the curve is above the x-axis, so this is over the given interval (0, 10). The maximum profit is earned at x = 3, and the x-value is the money spent on advertising in hundreds of dollars, so this means that $300 was spent of advertising.
