Market Research: You have an apple orchard. You let people pick their own apples. When you...

Market Research:

You have an apple orchard. You let people pick their own apples. When you let people pick a small bag for $6, there were 6,316 small bags sold. You do some market research and find that a $0.25 increase in price means 235 fewer small bags of apples sold. Recall that revenue is quantity sold X Price per quantity. If we let x be the number of $0.25 increases or decreases from $6 and R be revenue, then answer the following questions:

A) What equation represents what you expect the revenue to be based on your research?

B) Based on your answer in A, if you charge $5.75 (x= -1) how much do you expect the revenue to be?

C) At what price or prices will you have $30,000 in sales, If your expectations listed above are true?

I would appreciate any and all help. If you give the answers, could you please show work and explain how you got them? I did my best in trying to re-write the questions (my professor doesnt have great grammar.)

Expert Solution

A). When people are permitted to pick a small bag of apples for $ 6, then 6,316 small bags of apples are sold. The decrease in the no. of small bags of apples sold is 235 when the price per small bag of apples is increased from $ 6 to 6.25. If x be the number of $ 0.25 increases from $ 6 and R be revenue, then the revenue is R= (6+0.25x)*(6316-235x)= 37896 +169x - 58.75x².

B). If $ 5.75 is charged for a small bag of apples, then the quantity sold would be 6316+235 = 6551 small bags of apples so that the revenue would be 6551*$ 5.75 = $ 37668.25. Alternatively, on substituting x = -1 in the value of R arrived at in part A0 above, the revenue would be 37896 -169 - 58.75 = $ 37668.25.

C). Let the price be $ 6+0.25x when the sales are $ 30000. Then 30000 = 37896 +169x - 58.75x² or, 58.75x² -169x - 896 = 0. A graph of this function is attached. It may be observed that the graph crosses the X-Axis at x = -2.723 and x = 5.6. Hence, the sales would be $ 30000, when the price per small bag is $ 6.00-2.723*0.25 = $ 5.32 or $ 6+5.6*0.25 = $ 7.40. If we round off x to the nearest whole number, then these prices would be $ 6-3*0.25 = $ 5.25 and $ 6+6*0.25 = $ 7.50 respectively.

milcah answered 2 years ago

Allie’s Apple Orchard (AAO) is a privately owned company that specializes in pick-your own apples, strawberries...

Allie’s Apple Orchard (AAO) is a privately owned company that specializes in pick-your own apples, strawberries and raspberries. The Farm is dedicated to modern, environmentally friendly growing practices. They are located in Port Perry, Ontario. AAO incorporated 15 years ago by the Pierce family. The company has a December 31 year-end. In a recent meeting with the owner, Allison Pierce, she indicated that the family has been provided an opportunity to purchase an additional 100 acres of land at a...

Suppose that you own an apple orchard and the following chart represents the quantity of apples...

Suppose that you own an apple orchard and the following chart represents the quantity of apples that can be picked from your orchard per hour with a given quantity of capital equipment, such as baskets and ladders. [15 points] a. Complete the table above by calculating the average total cost, marginal cost, average variable cost, and the average fixed cost. Quantity of Workers Apples Picked by workers Fixed Costs (FC) Variable Costs (VC) Total Costs (TC) Cost per Apple (ATC)...

An apple orchard farmer wants to know the true population proportion of all apples harvested at...

An apple orchard farmer wants to know the true population proportion of all apples harvested at their farm which have the less valuable condition of being blemished, or in other words, are cider apples. This true population proportion is a parameter value represented by the symbol p. As a population parameter, this value can never be known with certainty. It can however, be estimated with varying levels of confidence. To estimate this parameter p, the farmer draws a simple random...

. The Pomme d’Alouette Orchard provides apples to a national maker of “hard” apple cider. The recent growth...

. The Pomme d’Alouette Orchard provides apples to a national maker of “hard” apple cider. The recent growth of consumer demand for cider has encouraged the orchard to plant new apple trees in order to increase substantially its production of apples. The orchard is considering the purchase of a new variety of apple tree. NeuApfel, developers of the new variety, claim a square acre planted in the new variety will produce the same average yield (in tons) of apples each year as the...

Suppose that 32% of the apples grown on a particular orchard have blemishes that make it...

Suppose that 32% of the apples grown on a particular orchard have blemishes that make it difficult for them to be sold at a market. If a market purchases a crate that contains 100 apples selected randomly from the orchard, answer each of the following. Find the mean and standard deviation for the number of blemished apples in the crate. Compute the probability of there being exactly 32 blemished apples in the crate. Would it be considered unusual for 40...

All else the same, when the price of apples rises, apple producers will have an incentive...

All else the same, when the price of apples rises, apple producers will have an incentive to plant more apple trees. True or False?

You are a manager of an apple orchard. For harvesting apple, you need to hire some workers.

You are a manager of an apple orchard. For harvesting apple, you need to hire some workers. Worker is the variable factor and per worker wage is $40/day. Fixed cost of the orchard is $10 per day. You have been given the following information in relation to your apple harvesting: Workers per day Harvesting kg per day 0 0 1 100 2 275 3 460 4 620 5 755 6 860 7 920 8 960 a) Calculate marginal cost, average...

Joe owns and operates Pick Your Own farm where people can come and pick their own...

Joe owns and operates Pick Your Own farm where people can come and pick their own fruit. He has strawberries in May and June, blueberries in July, peaches in August and Apples in September and October. Joe’s along with his expected average pounds picked per person is given below: Price per pound Pounds picked Strawberries 2.00 3.00 Blueberries 1.75 3.50 Peaches 1.50 4.00 Apples 1.25 5.00 Joe owns four tractors and each tractor can carry 20 people out to the...

You are an apple farmer who sell apples by the boxes. Each box contains 6 Apples....

You are an apple farmer who sell apples by the boxes. Each box contains 6 Apples. You have 30 boxes of apples. Price of each box is $20. Using cout object as studied in the class and by use of algorithm(s), display following in the format as written below: 1. Total number of apples in all boxes are ______________ 2. Total apples will be sold for $_____________________ Upload your assignment here. using python and no copy from other assingment and...

You are considering the purchase of 10 acres to plant an apple orchard. The land is...

You are considering the purchase of 10 acres to plant an apple orchard. The land is priced at $17,500/acre and it will cost $65,000 to plant the trees and install the irrigation system. Based on your research, you won't be producing enough apples to sell until year 5. From then on you estimate your net returns will be $45,000 a year. If you plan on operating the orchard for 15 years, what is your NPV? Assume that the land appreciates...

Question