Question
In: Statistics and Probability
Problem 10-16 (Some Useful Excel Functions for Modeling) The Camera Shop sells two popular models of...
Problem 10-16 (Some Useful Excel Functions for Modeling)
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 the quantity sold (N) and prices (P) of each model:
NA = 195 - 0.6PA + 0.25PB
NB = 301 + 0.08PA - 0.5PB
A. Construct a model
for the total revenue and implement it on a spreadsheet. What is
the total revenue from selling the two products based on the
current prices?
$ ___________________________
Assume that product A price is kept at $200. Develop a data table
to estimate the optimal price for product B in order to maximize
the total revenue. Vary the price of product B from $250 to $500 in
increments of $10.
B. Max revenue occurs at Camera B price of $ . $___________________________________________
C. The maximum revenue obtained with the above price of Camera B would be $ . $________________________
Solutions
Expert Solution
I HOPE ITS HELPFUL TO YOU IF YOU HAVE ANY DOUBTS PLS COMMENTS BELOW..I WILL BE THERE TO HELP YOU ...ALL THE BEST
I HOPE YOU UNDERSTAND..PLS RATE THUMBS UP ITS HELPS ME ALOT..
THANK YOU...!!
orchestra answered 2 years agoRelated Solutions
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 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...
Go Camera manufactures and sells two types of cameras for cars and drones. These two models...
Go Camera manufactures and sells two types of cameras for cars
and drones. These two models are manufactured in separate
facilities and each facility is treated as profit center. Go Camera
serves as a supplier to car manufacturers as well as drone
manufacturers. The following table provides cost and price
information for each model:
Car Camera
Drone Camera
Selling Price
$70
$100
Variable Cost
$30
$35
Fixed Cost
$300,000
$ 600,000
Go Camera has a marketing department with cost $400,000...
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these...
Jim's Camera shop sells two high-end cameras, the Sky Eagle and
Horizon. The demand for these two cameras are as follows
(DS = demand for the Sky Eagle, Ps is the selling
price of the Sky Eagle, DH is the demand for the Horizon
and PH is the selling price of the Horizon):
Ds = 230 - 0.5PS + 0.38PH
DH = 260 + 0.1Ps - 0.62PH
Find the prices that maximize revenue.
If required, round your answers to two...
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these...
Jim's Camera shop
sells two high-end cameras, the Sky Eagle and Horizon. The demand
for these two cameras are as follows (DS =
demand for the Sky Eagle, Ps is the selling
price of the Sky Eagle, DH is the demand for
the Horizon and PH is the selling price of the
Horizon):
Ds
= 215 - 0.6 Ps + 0.25
PH
DH
= 270 + 0.1 Ps - 0.55
PH
The store wishes to
determine the selling price that...
A bicycle shop sells two styles of a road bike, 10-speed and 14-speed. During the month...
A bicycle shop sells two styles of a road bike, 10-speed and
14-speed. During the month of September, the management expects to
sell exactly 45 road bikes. The monthly profit is given by
P(x,y)=−(1/9)x^2−5y^2−(1/9)xy+10x+65y−100, where x is the number of
10-speed road bikes sold and y is the number of 14-speed road bikes
sold. How many of each type should be sold to maximize the profit
in September?
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 25. Total sales for...
Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 25. Total sales
for the year are $1,160,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 30 days
after their purchases. Assume 365 days in year for your
calculations.
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to
the nearest dollar. Do...
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 25. Total sales for...
Problem 16-06 Receivables Investment Snider Industries sells on
terms of 3/10, net 25. Total sales for the year are $530,000.
Thirty percent of customers pay on the 10th day and take discounts;
the other 70% pay, on average, 30 days after their purchases.
Assume 365 days in year for your calculations. What is the days
sales outstanding? Round your answer to one decimal place. days
What is the average amount of receivables? Round your answer to the
nearest dollar. Do...
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 35. Total sales for...
Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 35. Total sales
for the year are $510,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume 365 days in year for your
calculations.
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to
the nearest dollar. Do...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- There are a large number of tasks involved in information technology and programming, and many of...
- Using one quantitative and one qualitative health policy research method described in this chapter, design a...
- What is the Rawls' solution to the age-old question of social (economic / distributive) justice?...
- St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage...
- The following information is available for Robstown Corporation for 20Y8: Inventories January 1 December 31 Materials...
- /* Complete the TO DO comments below */ window.onload = function() { /* TODO add a...
- Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $4,532.35. The bonds...
ADVERTISEMENT