Edexcel P2 2019 June — Question 5

Exam BoardEdexcel
ModuleP2 (Pure Mathematics 2)
Year2019
SessionJune
TopicDifferentiation Applications
TypeFind stationary points

5. A company makes a particular type of watch. The annual profit made by the company from sales of these watches is modelled by the equation $$P = 12 x - x ^ { \frac { 3 } { 2 } } - 120$$ where \(P\) is the annual profit measured in thousands of pounds and \(\pounds x\) is the selling price of the watch. According to this model,
  1. find, using calculus, the maximum possible annual profit.
  2. Justify, also using calculus, that the profit you have found is a maximum.