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
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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...
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products are not independent of each other, but rather if the price
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(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
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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
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Ds
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Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 25. Total sales for...
Problem 16-06
Receivables Investment
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What is the days sales outstanding? Round your answer to one
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Problem 16-06 Receivables Investment Snider Industries sells on
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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...
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