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The Hickory Cabinet and Furniture Company has decided to concentrate on the production of chairs. The fixed cost per month of making chairs is $7,500, and the variable cost per chair is $40. Price is related to demandaccording to the following linear equation:
v = 400 - 1:2p;
where v is the demand and p is the price. Develop the nonlinear profit function for this company and determine the price that will maximize profit, the optimal volume, and the maximum profit per month.
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