The Radio Shop sells two popular models of portable sports radios: model A and model B....
The Radio Shop sells two popular models of portable sports radios: model A and model B. The sales of these products are not independent of each other (in economics, we call these substitutable products, because if the price of one increase, sales of the other will increase). The store wishes to establish a pricing policy to maximize revenue from the products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model (i.e. PA → Price of model A, NA → Number of model A sold, etc.):
NA = 20 – 0.62PA + 0.30PB
NB = 29 + 0.10PA – 0.60PB
-
a) Construct a model for the total revenue (total price*quantity sold) and implement it on a
spreadsheet.
-
b) Develop a two-way data table to estimate the optimal prices for each product to
maximize total revenue.
-
c) Use Solver to find the optimal prices.
Homework Answers
a)
| Na | Number of model A sold | =20 - 0.62*C3 + 0.3*C4 |
| Nb | Number of model B sold | =29 + 0.1*C3- 0.6*C4 |
| Pa | Price of model A | 0 |
| Pb | Price of model B | 0 |
| Total Revenue | =C1*C3+C2*C4 |
b) Two way data table is as follows-
| 0.0 | 0.0 | 1.0 | 2.0 | 3.0 | 4.0 | 5.0 | 6.0 | 7.0 | 8.0 | 9.0 | 10.0 | 11.0 | 12.0 | 13.0 | 14.0 | 15.0 |
| 0.0 | 0.0 | 19.4 | 37.5 | 54.4 | 70.1 | 84.5 | 97.7 | 109.6 | 120.3 | 129.8 | 138.0 | 145.0 | 150.7 | 155.2 | 158.5 | 160.5 |
| 1.0 | 28.4 | 48.2 | 66.7 | 84.0 | 100.1 | 114.9 | 128.5 | 140.8 | 151.9 | 161.8 | 170.4 | 177.8 | 183.9 | 188.8 | 192.5 | 194.9 |
| 2.0 | 55.6 | 75.8 | 94.7 | 112.4 | 128.9 | 144.1 | 158.1 | 170.8 | 182.3 | 192.6 | 201.6 | 209.4 | 215.9 | 221.2 | 225.3 | 228.1 |
| 3.0 | 81.6 | 102.2 | 121.5 | 139.6 | 156.5 | 172.1 | 186.5 | 199.6 | 211.5 | 222.2 | 231.6 | 239.8 | 246.7 | 252.4 | 256.9 | 260.1 |
| 4.0 | 106.4 | 127.4 | 147.1 | 165.6 | 182.9 | 198.9 | 213.7 | 227.2 | 239.5 | 250.6 | 260.4 | 269.0 | 276.3 | 282.4 | 287.3 | 290.9 |
| 5.0 | 130.0 | 151.4 | 171.5 | 190.4 | 208.1 | 224.5 | 239.7 | 253.6 | 266.3 | 277.8 | 288.0 | 297.0 | 304.7 | 311.2 | 316.5 | 320.5 |
| 6.0 | 152.4 | 174.2 | 194.7 | 214.0 | 232.1 | 248.9 | 264.5 | 278.8 | 291.9 | 303.8 | 314.4 | 323.8 | 331.9 | 338.8 | 344.5 | 348.9 |
| 7.0 | 173.6 | 195.8 | 216.7 | 236.4 | 254.9 | 272.1 | 288.1 | 302.8 | 316.3 | 328.6 | 339.6 | 349.4 | 357.9 | 365.2 | 371.3 | 376.1 |
| 8.0 | 193.6 | 216.2 | 237.5 | 257.6 | 276.5 | 294.1 | 310.5 | 325.6 | 339.5 | 352.2 | 363.6 | 373.8 | 382.7 | 390.4 | 396.9 | 402.1 |
| 9.0 | 212.4 | 235.4 | 257.1 | 277.6 | 296.9 | 314.9 | 331.7 | 347.2 | 361.5 | 374.6 | 386.4 | 397.0 | 406.3 | 414.4 | 421.3 | 426.9 |
| 10.0 | 230.0 | 253.4 | 275.5 | 296.4 | 316.1 | 334.5 | 351.7 | 367.6 | 382.3 | 395.8 | 408.0 | 419.0 | 428.7 | 437.2 | 444.5 | 450.5 |
| 11.0 | 246.4 | 270.2 | 292.7 | 314.0 | 334.1 | 352.9 | 370.5 | 386.8 | 401.9 | 415.8 | 428.4 | 439.8 | 449.9 | 458.8 | 466.5 | 472.9 |
| 12.0 | 261.6 | 285.8 | 308.7 | 330.4 | 350.9 | 370.1 | 388.1 | 404.8 | 420.3 | 434.6 | 447.6 | 459.4 | 469.9 | 479.2 | 487.3 | 494.1 |
| 13.0 | 275.6 | 300.2 | 323.5 | 345.6 | 366.5 | 386.1 | 404.5 | 421.6 | 437.5 | 452.2 | 465.6 | 477.8 | 488.7 | 498.4 | 506.9 | 514.1 |
| 14.0 | 288.4 | 313.4 | 337.1 | 359.6 | 380.9 | 400.9 | 419.7 | 437.2 | 453.5 | 468.6 | 482.4 | 495.0 | 506.3 | 516.4 | 525.3 | 532.9 |
| 15.0 | 300.0 | 325.4 | 349.5 | 372.4 | 394.1 | 414.5 | 433.7 | 451.6 | 468.3 | 483.8 | 498.0 | 511.0 | 522.7 | 533.2 | 542.5 | 550.5 |
| 16.0 | 310.4 | 336.2 | 360.7 | 384.0 | 406.1 | 426.9 | 446.5 | 464.8 | 481.9 | 497.8 | 512.4 | 525.8 | 537.9 | 548.8 | 558.5 | 566.9 |
| 17.0 | 319.6 | 345.8 | 370.7 | 394.4 | 416.9 | 438.1 | 458.1 | 476.8 | 494.3 | 510.6 | 525.6 | 539.4 | 551.9 | 563.2 | 573.3 | 582.1 |
| 18.0 | 327.6 | 354.2 | 379.5 | 403.6 | 426.5 | 448.1 | 468.5 | 487.6 | 505.5 | 522.2 | 537.6 | 551.8 | 564.7 | 576.4 | 586.9 | 596.1 |
| 19.0 | 334.4 | 361.4 | 387.1 | 411.6 | 434.9 | 456.9 | 477.7 | 497.2 | 515.5 | 532.6 | 548.4 | 563.0 | 576.3 | 588.4 | 599.3 | 608.9 |
| 20.0 | 340.0 | 367.4 | 393.5 | 418.4 | 442.1 | 464.5 | 485.7 | 505.6 | 524.3 | 541.8 | 558.0 | 573.0 | 586.7 | 599.2 | 610.5 | 620.5 |
| 21.0 | 344.4 | 372.2 | 398.7 | 424.0 | 448.1 | 470.9 | 492.5 | 512.8 | 531.9 | 549.8 | 566.4 | 581.8 | 595.9 | 608.8 | 620.5 | 630.9 |
| 22.0 | 347.6 | 375.8 | 402.7 | 428.4 | 452.9 | 476.1 | 498.1 | 518.8 | 538.3 | 556.6 | 573.6 | 589.4 | 603.9 | 617.2 | 629.3 | 640.1 |
| 23.0 | 349.6 | 378.2 | 405.5 | 431.6 | 456.5 | 480.1 | 502.5 | 523.6 | 543.5 | 562.2 | 579.6 | 595.8 | 610.7 | 624.4 | 636.9 | 648.1 |
| 24.0 | 350.4 | 379.4 | 407.1 | 433.6 | 458.9 | 482.9 | 505.7 | 527.2 | 547.5 | 566.6 | 584.4 | 601.0 | 616.3 | 630.4 | 643.3 | 654.9 |
| 25.0 | 350.0 | 379.4 | 407.5 | 434.4 | 460.1 | 484.5 | 507.7 | 529.6 | 550.3 | 569.8 | 588.0 | 605.0 | 620.7 | 635.2 | 648.5 | 660.5 |
| 26.0 | 348.4 | 378.2 | 406.7 | 434.0 | 460.1 | 484.9 | 508.5 | 530.8 | 551.9 | 571.8 | 590.4 | 607.8 | 623.9 | 638.8 | 652.5 | 664.9 |
| 27.0 | 345.6 | 375.8 | 404.7 | 432.4 | 458.9 | 484.1 | 508.1 | 530.8 | 552.3 | 572.6 | 591.6 | 609.4 | 625.9 | 641.2 | 655.3 | 668.1 |
| 28.0 | 341.6 | 372.2 | 401.5 | 429.6 | 456.5 | 482.1 | 506.5 | 529.6 | 551.5 | 572.2 | 591.6 | 609.8 | 626.7 | 642.4 | 656.9 | 670.1 |
| 29.0 | 336.4 | 367.4 | 397.1 | 425.6 | 452.9 | 478.9 | 503.7 | 527.2 | 549.5 | 570.6 | 590.4 | 609.0 | 626.3 | 642.4 | 657.3 | 670.9 |
| 30.0 | 330.0 | 361.4 | 391.5 | 420.4 | 448.1 | 474.5 | 499.7 | 523.6 | 546.3 | 567.8 | 588.0 | 607.0 | 624.7 | 641.2 | 656.5 | 670.5 |
| 31.0 | 322.4 | 354.2 | 384.7 | 414.0 | 442.1 | 468.9 | 494.5 | 518.8 | 541.9 | 563.8 | 584.4 | 603.8 | 621.9 | 638.8 | 654.5 | 668.9 |
| 32.0 | 313.6 | 345.8 | 376.7 | 406.4 | 434.9 | 462.1 | 488.1 | 512.8 | 536.3 | 558.6 | 579.6 | 599.4 | 617.9 | 635.2 | 651.3 | 666.1 |
| 33.0 | 303.6 | 336.2 | 367.5 | 397.6 | 426.5 | 454.1 | 480.5 | 505.6 | 529.5 | 552.2 | 573.6 | 593.8 | 612.7 | 630.4 | 646.9 | 662.1 |
| 34.0 | 292.4 | 325.4 | 357.1 | 387.6 | 416.9 | 444.9 | 471.7 | 497.2 | 521.5 | 544.6 | 566.4 | 587.0 | 606.3 | 624.4 | 641.3 | 656.9 |
| 35.0 | 280.0 | 313.4 | 345.5 | 376.4 | 406.1 | 434.5 | 461.7 | 487.6 | 512.3 | 535.8 | 558.0 | 579.0 | 598.7 | 617.2 | 634.5 | 650.5 |
| 36.0 | 266.4 | 300.2 | 332.7 | 364.0 | 394.1 | 422.9 | 450.5 | 476.8 | 501.9 | 525.8 | 548.4 | 569.8 | 589.9 | 608.8 | 626.5 | 642.9 |
| 37.0 | 251.6 | 285.8 | 318.7 | 350.4 | 380.9 | 410.1 | 438.1 | 464.8 | 490.3 | 514.6 | 537.6 | 559.4 | 579.9 | 599.2 | 617.3 | 634.1 |
| 38.0 | 235.6 | 270.2 | 303.5 | 335.6 | 366.5 | 396.1 | 424.5 | 451.6 | 477.5 | 502.2 | 525.6 | 547.8 | 568.7 | 588.4 | 606.9 | 624.1 |
| 39.0 | 218.4 | 253.4 | 287.1 | 319.6 | 350.9 | 380.9 | 409.7 | 437.2 | 463.5 | 488.6 | 512.4 | 535.0 | 556.3 | 576.4 | 595.3 | 612.9 |
| 40.0 | 200.0 | 235.4 | 269.5 | 302.4 | 334.1 | 364.5 | 393.7 | 421.6 | 448.3 | 473.8 | 498.0 | 521.0 | 542.7 | 563.2 | 582.5 | 600.5 |
| 41.0 | 180.4 | 216.2 | 250.7 | 284.0 | 316.1 | 346.9 | 376.5 | 404.8 | 431.9 | 457.8 | 482.4 | 505.8 | 527.9 | 548.8 | 568.5 | 586.9 |
| 42.0 | 159.6 | 195.8 | 230.7 | 264.4 | 296.9 | 328.1 | 358.1 | 386.8 | 414.3 | 440.6 | 465.6 | 489.4 | 511.9 | 533.2 | 553.3 | 572.1 |
| 43.0 | 137.6 | 174.2 | 209.5 | 243.6 | 276.5 | 308.1 | 338.5 | 367.6 | 395.5 | 422.2 | 447.6 | 471.8 | 494.7 | 516.4 | 536.9 | 556.1 |
| 44.0 | 114.4 | 151.4 | 187.1 | 221.6 | 254.9 | 286.9 | 317.7 | 347.2 | 375.5 | 402.6 | 428.4 | 453.0 | 476.3 | 498.4 | 519.3 | 538.9 |
| 45.0 | 90.0 | 127.4 | 163.5 | 198.4 | 232.1 | 264.5 | 295.7 | 325.6 | 354.3 | 381.8 | 408.0 | 433.0 | 456.7 | 479.2 | 500.5 | 520.5 |
| 46.0 | 64.4 | 102.2 | 138.7 | 174.0 | 208.1 | 240.9 | 272.5 | 302.8 | 331.9 | 359.8 | 386.4 | 411.8 | 435.9 | 458.8 | 480.5 | 500.9 |
| 47.0 | 37.6 | 75.8 | 112.7 | 148.4 | 182.9 | 216.1 | 248.1 | 278.8 | 308.3 | 336.6 | 363.6 | 389.4 | 413.9 | 437.2 | 459.3 | 480.1 |
| 48.0 | 9.6 | 48.2 | 85.5 | 121.6 | 156.5 | 190.1 | 222.5 | 253.6 | 283.5 | 312.2 | 339.6 | 365.8 | 390.7 | 414.4 | 436.9 | 458.1 |
| 49.0 | -19.6 | 19.4 | 57.1 | 93.6 | 128.9 | 162.9 | 195.7 | 227.2 | 257.5 | 286.6 | 314.4 | 341.0 | 366.3 | 390.4 | 413.3 | 434.9 |
| 50.0 | -50.0 | -10.6 | 27.5 | 64.4 | 100.1 | 134.5 | 167.7 | 199.6 | 230.3 | 259.8 | 288.0 | 315.0 | 340.7 | 365.2 | 388.5 | 410.5 |
| 0.0 | 16.0 | 17.0 | 18.0 | 19.0 | 20.0 | 21.0 | 22.0 | 23.0 | 24.0 | 25.0 | 26.0 | 27.0 | 28.0 | 29.0 | 30.0 |
| 0.0 | 161.3 | 160.8 | 159.1 | 156.2 | 152.0 | 146.6 | 139.9 | 132.0 | 122.9 | 112.5 | 100.9 | 88.0 | 73.9 | 58.6 | 42.0 |
| 1.0 | 196.1 | 196.0 | 194.7 | 192.2 | 188.4 | 183.4 | 177.1 | 169.6 | 160.9 | 150.9 | 139.7 | 127.2 | 113.5 | 98.6 | 82.4 |
| 2.0 | 229.7 | 230.0 | 229.1 | 227.0 | 223.6 | 219.0 | 213.1 | 206.0 | 197.7 | 188.1 | 177.3 | 165.2 | 151.9 | 137.4 | 121.6 |
| 3.0 | 262.1 | 262.8 | 262.3 | 260.6 | 257.6 | 253.4 | 247.9 | 241.2 | 233.3 | 224.1 | 213.7 | 202.0 | 189.1 | 175.0 | 159.6 |
| 4.0 | 293.3 | 294.4 | 294.3 | 293.0 | 290.4 | 286.6 | 281.5 | 275.2 | 267.7 | 258.9 | 248.9 | 237.6 | 225.1 | 211.4 | 196.4 |
| 5.0 | 323.3 | 324.8 | 325.1 | 324.2 | 322.0 | 318.6 | 313.9 | 308.0 | 300.9 | 292.5 | 282.9 | 272.0 | 259.9 | 246.6 | 232.0 |
| 6.0 | 352.1 | 354.0 | 354.7 | 354.2 | 352.4 | 349.4 | 345.1 | 339.6 | 332.9 | 324.9 | 315.7 | 305.2 | 293.5 | 280.6 | 266.4 |
| 7.0 | 379.7 | 382.0 | 383.1 | 383.0 | 381.6 | 379.0 | 375.1 | 370.0 | 363.7 | 356.1 | 347.3 | 337.2 | 325.9 | 313.4 | 299.6 |
| 8.0 | 406.1 | 408.8 | 410.3 | 410.6 | 409.6 | 407.4 | 403.9 | 399.2 | 393.3 | 386.1 | 377.7 | 368.0 | 357.1 | 345.0 | 331.6 |
| 9.0 | 431.3 | 434.4 | 436.3 | 437.0 | 436.4 | 434.6 | 431.5 | 427.2 | 421.7 | 414.9 | 406.9 | 397.6 | 387.1 | 375.4 | 362.4 |
| 10.0 | 455.3 | 458.8 | 461.1 | 462.2 | 462.0 | 460.6 | 457.9 | 454.0 | 448.9 | 442.5 | 434.9 | 426.0 | 415.9 | 404.6 | 392.0 |
| 11.0 | 478.1 | 482.0 | 484.7 | 486.2 | 486.4 | 485.4 | 483.1 | 479.6 | 474.9 | 468.9 | 461.7 | 453.2 | 443.5 | 432.6 | 420.4 |
| 12.0 | 499.7 | 504.0 | 507.1 | 509.0 | 509.6 | 509.0 | 507.1 | 504.0 | 499.7 | 494.1 | 487.3 | 479.2 | 469.9 | 459.4 | 447.6 |
| 13.0 | 520.1 | 524.8 | 528.3 | 530.6 | 531.6 | 531.4 | 529.9 | 527.2 | 523.3 | 518.1 | 511.7 | 504.0 | 495.1 | 485.0 | 473.6 |
| 14.0 | 539.3 | 544.4 | 548.3 | 551.0 | 552.4 | 552.6 | 551.5 | 549.2 | 545.7 | 540.9 | 534.9 | 527.6 | 519.1 | 509.4 | 498.4 |
| 15.0 | 557.3 | 562.8 | 567.1 | 570.2 | 572.0 | 572.6 | 571.9 | 570.0 | 566.9 | 562.5 | 556.9 | 550.0 | 541.9 | 532.6 | 522.0 |
| 16.0 | 574.1 | 580.0 | 584.7 | 588.2 | 590.4 | 591.4 | 591.1 | 589.6 | 586.9 | 582.9 | 577.7 | 571.2 | 563.5 | 554.6 | 544.4 |
| 17.0 | 589.7 | 596.0 | 601.1 | 605.0 | 607.6 | 609.0 | 609.1 | 608.0 | 605.7 | 602.1 | 597.3 | 591.2 | 583.9 | 575.4 | 565.6 |
| 18.0 | 604.1 | 610.8 | 616.3 | 620.6 | 623.6 | 625.4 | 625.9 | 625.2 | 623.3 | 620.1 | 615.7 | 610.0 | 603.1 | 595.0 | 585.6 |
| 19.0 | 617.3 | 624.4 | 630.3 | 635.0 | 638.4 | 640.6 | 641.5 | 641.2 | 639.7 | 636.9 | 632.9 | 627.6 | 621.1 | 613.4 | 604.4 |
| 20.0 | 629.3 | 636.8 | 643.1 | 648.2 | 652.0 | 654.6 | 655.9 | 656.0 | 654.9 | 652.5 | 648.9 | 644.0 | 637.9 | 630.6 | 622.0 |
| 21.0 | 640.1 | 648.0 | 654.7 | 660.2 | 664.4 | 667.4 | 669.1 | 669.6 | 668.9 | 666.9 | 663.7 | 659.2 | 653.5 | 646.6 | 638.4 |
| 22.0 | 649.7 | 658.0 | 665.1 | 671.0 | 675.6 | 679.0 | 681.1 | 682.0 | 681.7 | 680.1 | 677.3 | 673.2 | 667.9 | 661.4 | 653.6 |
| 23.0 | 658.1 | 666.8 | 674.3 | 680.6 | 685.6 | 689.4 | 691.9 | 693.2 | 693.3 | 692.1 | 689.7 | 686.0 | 681.1 | 675.0 | 667.6 |
| 24.0 | 665.3 | 674.4 | 682.3 | 689.0 | 694.4 | 698.6 | 701.5 | 703.2 | 703.7 | 702.9 | 700.9 | 697.6 | 693.1 | 687.4 | 680.4 |
| 25.0 | 671.3 | 680.8 | 689.1 | 696.2 | 702.0 | 706.6 | 709.9 | 712.0 | 712.9 | 712.5 | 710.9 | 708.0 | 703.9 | 698.6 | 692.0 |
| 26.0 | 676.1 | 686.0 | 694.7 | 702.2 | 708.4 | 713.4 | 717.1 | 719.6 | 720.9 | 720.9 | 719.7 | 717.2 | 713.5 | 708.6 | 702.4 |
| 27.0 | 679.7 | 690.0 | 699.1 | 707.0 | 713.6 | 719.0 | 723.1 | 726.0 | 727.7 | 728.1 | 727.3 | 725.2 | 721.9 | 717.4 | 711.6 |
| 28.0 | 682.1 | 692.8 | 702.3 | 710.6 | 717.6 | 723.4 | 727.9 | 731.2 | 733.3 | 734.1 | 733.7 | 732.0 | 729.1 | 725.0 | 719.6 |
| 29.0 | 683.3 | 694.4 | 704.3 | 713.0 | 720.4 | 726.6 | 731.5 | 735.2 | 737.7 | 738.9 | 738.9 | 737.6 | 735.1 | 731.4 | 726.4 |
| 30.0 | 683.3 | 694.8 | 705.1 | 714.2 | 722.0 | 728.6 | 733.9 | 738.0 | 740.9 | 742.5 | 742.9 | 742.0 | 739.9 | 736.6 | 732.0 |
| 31.0 | 682.1 | 694.0 | 704.7 | 714.2 | 722.4 | 729.4 | 735.1 | 739.6 | 742.9 | 744.9 | 745.7 | 745.2 | 743.5 | 740.6 | 736.4 |
| 32.0 | 679.7 | 692.0 | 703.1 | 713.0 | 721.6 | 729.0 | 735.1 | 740.0 | 743.7 | 746.1 | 747.3 | 747.2 | 745.9 | 743.4 | 739.6 |
| 33.0 | 676.1 | 688.8 | 700.3 | 710.6 | 719.6 | 727.4 | 733.9 | 739.2 | 743.3 | 746.1 | 747.7 | 748.0 | 747.1 | 745.0 | 741.6 |
| 34.0 | 671.3 | 684.4 | 696.3 | 707.0 | 716.4 | 724.6 | 731.5 | 737.2 | 741.7 | 744.9 | 746.9 | 747.6 | 747.1 | 745.4 | 742.4 |
| 35.0 | 665.3 | 678.8 | 691.1 | 702.2 | 712.0 | 720.6 | 727.9 | 734.0 | 738.9 | 742.5 | 744.9 | 746.0 | 745.9 | 744.6 | 742.0 |
| 36.0 | 658.1 | 672.0 | 684.7 | 696.2 | 706.4 | 715.4 | 723.1 | 729.6 | 734.9 | 738.9 | 741.7 | 743.2 | 743.5 | 742.6 | 740.4 |
| 37.0 | 649.7 | 664.0 | 677.1 | 689.0 | 699.6 | 709.0 | 717.1 | 724.0 | 729.7 | 734.1 | 737.3 | 739.2 | 739.9 | 739.4 | 737.6 |
| 38.0 | 640.1 | 654.8 | 668.3 | 680.6 | 691.6 | 701.4 | 709.9 | 717.2 | 723.3 | 728.1 | 731.7 | 734.0 | 735.1 | 735.0 | 733.6 |
| 39.0 | 629.3 | 644.4 | 658.3 | 671.0 | 682.4 | 692.6 | 701.5 | 709.2 | 715.7 | 720.9 | 724.9 | 727.6 | 729.1 | 729.4 | 728.4 |
| 40.0 | 617.3 | 632.8 | 647.1 | 660.2 | 672.0 | 682.6 | 691.9 | 700.0 | 706.9 | 712.5 | 716.9 | 720.0 | 721.9 | 722.6 | 722.0 |
| 41.0 | 604.1 | 620.0 | 634.7 | 648.2 | 660.4 | 671.4 | 681.1 | 689.6 | 696.9 | 702.9 | 707.7 | 711.2 | 713.5 | 714.6 | 714.4 |
| 42.0 | 589.7 | 606.0 | 621.1 | 635.0 | 647.6 | 659.0 | 669.1 | 678.0 | 685.7 | 692.1 | 697.3 | 701.2 | 703.9 | 705.4 | 705.6 |
| 43.0 | 574.1 | 590.8 | 606.3 | 620.6 | 633.6 | 645.4 | 655.9 | 665.2 | 673.3 | 680.1 | 685.7 | 690.0 | 693.1 | 695.0 | 695.6 |
| 44.0 | 557.3 | 574.4 | 590.3 | 605.0 | 618.4 | 630.6 | 641.5 | 651.2 | 659.7 | 666.9 | 672.9 | 677.6 | 681.1 | 683.4 | 684.4 |
| 45.0 | 539.3 | 556.8 | 573.1 | 588.2 | 602.0 | 614.6 | 625.9 | 636.0 | 644.9 | 652.5 | 658.9 | 664.0 | 667.9 | 670.6 | 672.0 |
| 46.0 | 520.1 | 538.0 | 554.7 | 570.2 | 584.4 | 597.4 | 609.1 | 619.6 | 628.9 | 636.9 | 643.7 | 649.2 | 653.5 | 656.6 | 658.4 |
| 47.0 | 499.7 | 518.0 | 535.1 | 551.0 | 565.6 | 579.0 | 591.1 | 602.0 | 611.7 | 620.1 | 627.3 | 633.2 | 637.9 | 641.4 | 643.6 |
| 48.0 | 478.1 | 496.8 | 514.3 | 530.6 | 545.6 | 559.4 | 571.9 | 583.2 | 593.3 | 602.1 | 609.7 | 616.0 | 621.1 | 625.0 | 627.6 |
| 49.0 | 455.3 | 474.4 | 492.3 | 509.0 | 524.4 | 538.6 | 551.5 | 563.2 | 573.7 | 582.9 | 590.9 | 597.6 | 603.1 | 607.4 | 610.4 |
| 50.0 | 431.3 | 450.8 | 469.1 | 486.2 | 502.0 | 516.6 | 529.9 | 542.0 | 552.9 | 562.5 | 570.9 | 578.0 | 583.9 | 588.6 | 592.0 |
As we can see that the optimal prices for each product in order to maximize the total revenue are PA = 27$ , PB= 33 $
c) using Solver ,the solution is -
| Na | Number of model A sold | 13 |
| Nb | Number of model B sold | 12 |
| Pa | Price of model A | 27 |
| Pb | Price of model B | 33 |
| Total Revenue | 748.0572 |
screenshot of solver is as follows-
Add Answer to:
The Radio Shop sells two popular models of portable sports
radios: model A and model B....
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera B Pr...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera B Price: 310). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera A Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy o maximize revenue rom these products. A study of price and sales data shows the fol in...
Spreadsheet Model Analysis
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between...
Munoz Radio Corporation is a subsidiary of Salem Companies. Munoz makes car radios that it sells...
Munoz Radio Corporation is a subsidiary of Salem Companies. Munoz makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $41 each. Recently, Salem acquired the Jordan Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Jordan produces and sells approximately 330,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $33 to produce. This cost consists...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 14,100 portable grills, 47,000 stationary grills, and 4,700 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $86 $195 $245 Variable cost per unit 42 126 144 Total fixed cost is $1,947,530. Required: 1. What is the sales mix of portable grills to...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,900 portable grills, 47,700 stationary grills, and 5,300 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $92 $199 $246 Variable cost per unit 50 127 136 Total fixed cost is $1.918,280 Required: 1. What is the sales mix of portable grills to...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 19,600 portable grills, 44,100 stationary grills, and 4,900 smokers. Information on the three models is as follows: Stationary Portable $86 Smokers $245 Price $198 Variable cost per unit - 43 126 144 Total fixed cost is $2,026,200. Required: 1. What is the sales mix of portable grills...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera A Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy o maximize revenue rom these products. A study of price and sales data shows the fol in...
Munoz Radio Corporation is a subsidiary of Salem Companies. Munoz makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $41 each. Recently, Salem acquired the Jordan Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Jordan produces and sells approximately 330,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $33 to produce. This cost consists...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,900 portable grills, 47,700 stationary grills, and 5,300 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $92 $199 $246 Variable cost per unit 50 127 136 Total fixed cost is $1.918,280 Required: 1. What is the sales mix of portable grills to...
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 19,600 portable grills, 44,100 stationary grills, and 4,900 smokers. Information on the three models is as follows: Stationary Portable $86 Smokers $245 Price $198 Variable cost per unit - 43 126 144 Total fixed cost is $2,026,200. Required: 1. What is the sales mix of portable grills...
Most questions answered within 3 hours.
-
If
the more comprehensive data is available in MEPS, why does the NHIS
still exist? How...
asked 17 minutes ago -
Koo argues that the Japanese economy in the 1990s suffered from
a balance sheet recession. What...
asked 10 minutes ago -
Automobile mechanics conduct diagnosis tests on 150 new cars of
particular make and model to determine...
asked 5 minutes ago -
11) Find the proceeds of a 5 year non-interest
bearing note for $6500 discounted 2.5 years...
asked 11 minutes ago -
Required: Prepare the consolidated financial statements of
Griffin Ltd at 30 June 2019.
Griffin Ltd is...
asked 20 minutes ago -
1.How large must the coefficient of static friction be between
the tires and the road if...
asked 36 minutes ago -
What is the time complexity (Big-O) of the following code?
class Main
{
// Recursive...
asked 35 minutes ago -
Economists look at any situation in terms of its component
parts: the people making decisions, the...
asked 41 minutes ago -
What is a population?
Select one:
a. All of the individual organisms belonging to the same...
asked 45 minutes ago -
You have a yeast cell culture with a concentration of 5x10^4
cells/ml. If you dilute this...
asked 49 minutes ago -
In which direction the Reaction goes? Show detailed process.
SeO3 + 2ClO2. + 2H3O <---> Se...
asked 1 hour ago -
Unexposed silver halides are removed from photographic film when
they react with sodium thiosulfate
(Na2S2O3, called...
asked 1 hour ago