Question 1 Use the following information to answer questions A through F: Jackson Outdoor Gear is...

Question 1 Use the following information to answer questions A through F: Jackson Outdoor Gear is one of the leading retailers of specialty sports gear. They recently changed from a price of $82.00 for their best-selling brand of hiking boots, at which they sold 1,450 pairs per month to a new, higher price of $92.00. At this new price point, Jackson Outdoor Gear has sold 1,225 pairs of the hiking boots. Variable costs per pair of boots are estimated at $27.00.

A) What were total dollar sales for Jackson Outdoor Gear's best-selling hiking Boots per month at the original price?

B) What is the change in total dollar sales per month with the new pricing structure in place?

C) Assuming the price-quantity relationship is linear, what is the slope?

D) What is the Maximum Willing to Buy?

E) Assuming linear demand, what is the Maximum Reservation Price?

F) What is the optimal (profit maximizing) price for a pair of the hiking boots?

-Thank you

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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