ZuoTi.Pro
Question

You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have...

You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have been approached to determine the best selling price for the hit calculus text by Whiner and Istanbul entitled Fun with Derivatives. You decide to make life easy and assume that the demand equation for Fun with Derivatives has the linear form q = mp + b, where p is the price per book, q is the demand in annual sales, and m and b are certain constants you must determine.

(a) Your market studies reveal the following sales figures: when the price is set at $45.00 per book, the sales amount to 10,000 per year; when the price is set at $81.00 per book, the sales drop to 1000 per year. Use these data to calculate the demand equation.

q =


(b) Now estimate the unit price that maximizes annual revenue.
$  

Predict what Big Book Publishing, Inc.'s annual revenue will be at that price.
$  

math   precalculus   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have...

    You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have been approached to determine the best selling price for the hit calculus text by Whiner and Istanbul entitled Fun with Derivatives. You decide to make life easy and assume that the demand equation for Fun with Derivatives has the linear form q = mp + b, where p is the price per book, 9 is the demand in annual sales, and m and b...

  • 9: -3 points WaneFMAC6 12.6.016. 0/6 Submissions Used My Notes You have been hired as a...

    9: -3 points WaneFMAC6 12.6.016. 0/6 Submissions Used My Notes You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have been approached determine the best selling price for the hit calculus text by Whiner and Istanbul entitled Fun with Denvatives. You decide to make life easy and assume that the demand equation for Fun with Derivatives has the linear form q mp b, where p is the price per book, q is the demand...

  • Book Publishing: You are the owner of a publishing firm and you have a new author...

    Book Publishing: You are the owner of a publishing firm and you have a new author that you plan to publish. It is an action/espionage novel. You believe that the author has a good book, but it is her first book and you don’t really know what the sales numbers will look like. As such, you want to do a break even analysis to find out how many books you have to sell in order to get back your initial...

  • 7. Suppose that you have been hired as an economist by OPEC and given the following...

    7. Suppose that you have been hired as an economist by OPEC and given the following schedule showing the world demand for oil:Your advice is needed on the following Price(S/barrel) Quantity demanded(millions of barrels/day) 10 20 30 40 50 60 50 40 30 20 questions: a) If the price rises from $20 to $30 a barrel, will the total revenue from oil sales increase or decrease? b) What will happen to total revenue if the supply of oil is decreased...

  • Assume that you are a consultant to Broske Inc., and you have been provided with the...

    Assume that you are a consultant to Broske Inc., and you have been provided with the following data: The company pays a fixed annual dividend of $4.8 per share and its current stock price is $50. The company is operating in a mature industry and not expected to grow at all. What is the cost of equity for the company?

  • Assume you have been hired as an intern at the Golden Eagle Country Club golf course....

    Assume you have been hired as an intern at the Golden Eagle Country Club golf course. You are assigned to set up a pricing scheme for the course, for which typical structure is to charge an annual membership fee and a per-round fee. Each of your customers is estimated to have the following demand curve for rounds of golf per year: Q = 300 - 5P. If Golden Eagle can provide rounds of golf at a constant marginal cost of...

  • Please show work! Homework Assignment 1 You must show all your work to earn points ECON...

    Please show work! Homework Assignment 1 You must show all your work to earn points ECON 3125 SP19 Name: 1. Use the graph below to answer the questions: 80 70 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P.-a-bQ a. b. State the equation for the demand function implied in the graph using the format Q.-c-dP c. Find the equation for Total Revenue, where TR...

  • Elite publishing Company has established Business Book Club, Inc. (BBC) a subsidiary that operates as follows:...

    Elite publishing Company has established Business Book Club, Inc. (BBC) a subsidiary that operates as follows: BBC’s editors select from among recently published business books those they believe will be most interesting to business people. BBC will purchase these books in large quantities at approximately 40% of list price and then sell them to their club members at approximately 75% of the list price. Both direct mail and advertisements in selected publication are used to solicit new customers. The advertisements...

  • 1. Use the graph below to answer the questions: 80 70 60 50 40 30 20...

    1. Use the graph below to answer the questions: 80 70 60 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P a-bQi a. b. State the equation for the demand function implied in the graph using the format Q c-dP Find the equation for Total Revenue, where TR is a function of output (Q): c. d. Find the equation for Marginal Revenue, where MR is...

  • For this activity, you have been hired as a team of consultants on a multi-year basis...

    For this activity, you have been hired as a team of consultants on a multi-year basis for a global washer and dryer manufacturer. They currently offer two core washer and dryer sets: a high-end model and an economic model. You are tasked to complete several calculations and present your findings to the company stakeholders. 1. For your first assignment, management has provided the following revenue and cost information: High-End Set Economical Set Sales price $3,500 per unit    $1,000 per unit  ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT