Question

In: Advanced Math

As the new owner of a supermarket, you have inherited a large inventory of unsold imported...

As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue from selling it is as large as possible. Previous sales figures of the cheese are shown in the following table.

Price per Pound, p $3.00 $4.00 $5.00

Monthly Sales, q (pounds) 402 284 222

(a) Use the sales figures for the prices $4 and $5 per pound to construct a demand function of the form q = Ae−bp, where A and b are constants you must determine. (Round A and b to two significant digits.) q =

(b) Use your demand function to find the price elasticity of demand at each of the prices listed. (Round your answers to two decimal places.) p = $3, E = p = $4, E = p = $5, E =

(c) At what price should you sell the cheese to maximize monthly revenue? (Round your answer to the nearest cent.) $

(d) If your total inventory of cheese amounts to only 200 pounds, and it will spoil one month from now, how should you price it to receive the greatest revenue? (Round your answer to the nearest cent.)

Solutions

Expert Solution


Related Solutions

MyOriental is a new supermarket chain that specialises in imported Asian products. It has opened branches...
MyOriental is a new supermarket chain that specialises in imported Asian products. It has opened branches in several Australian cities over the past three years. The Chief Financial Officer (CFO) is keen to estimate and compare the daily revenue achieved in Perth, Darwin, Melbourne and Sydney where MyOriental has invested the most. Due to data availability, the CFO does not have the full record of daily revenues. A random sample of daily revenues for each location is all she has....
You are an owner of Carrefour supermarket. You have made feature advertisings for last three years....
You are an owner of Carrefour supermarket. You have made feature advertisings for last three years. You want to know the effectiveness of this feature advertising on store traffic(numbers of shoppers) in different week. In data set, you have: average numbers of shoppers, average numbers of feature advertising, and average price each week. With the tables bellow it was done a REGRESSION model in Excel and you should interpret the results obtained from the equation based on the questions. Q1....
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years. You want to know the effectiveness of this feature advertising on store traffic(numbers of shoppers) in different week. In data set, you have: average numbers of shoppers, average numbers of feature advertising, and average price each week. With the table bellow has to be done a REGRESSION model in Excel and interpret the results obtained from the equation based on the questions. Hi Price...
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years. You want to know the effectiveness of this feature advertising on store traffic(numbers of shoppers) in different week. In data set, you have: average numbers of shoppers, average numbers of feature advertising, and average price each week. Hi Price Lo Price Hi Adv 832 1102 625 888 821 1056 605 1407 545 878 701 977 454 999 605 1212 787 905 568 655 Lo...
Case: You have just inherited a large sum of money and you are trying to determine...
Case: You have just inherited a large sum of money and you are trying to determine how much you will get after retirement and how much you can spend now. For retirement you will deposit today (January 1,2015) 2,500,000 euros in a bank account paying 4.55% compounded annually. You do not plan on touching this deposit until you retire in five years (January 1, 2020) and you plan on living for 20 additional years and then drop dead on December...
1) Book Publishing You are the owner of a publishing firm and you have a new...
1) Book Publishing You are the owner of a publishing firm and you have a new author that you plan to publish. It is an action/espionage novel. You believe that the author has a good book, but it is her first book and you don’t really know what the sales numbers will look like. As such, you want to do a break even analysis to find out how many books you have to sell in order to get back your...
Book Publishing You are the owner of a publishing firm and you have a new author...
Book Publishing You are the owner of a publishing firm and you have a new author that you plan to publish. It is an action/espionage novel. You believe that the author has a good book, but it is her first book and you don’t really know what the sales numbers will look like. As such, you want to do a break even analysis to find out how many books you have to sell in order to get back your initial...
Barbara was a regular shopper at Egeeay Supermarket, which was part of a large nationwide supermarket...
Barbara was a regular shopper at Egeeay Supermarket, which was part of a large nationwide supermarket chain. She was there at least once a week and sometimes more often if the specials were really good. When Barbara was there this week, she slipped on some grapes in the pet-food section in aisle 3, slipping and falling, and breaking her ankle. The store manager was not sure how the grapes got there or how long they had been there, but store...
The owner of a local supermarket wants to estimate the difference between the average number of...
The owner of a local supermarket wants to estimate the difference between the average number of gallons of milk sold per day on weekdays and weekends. The owner samples 8 weekdays and finds an average of 218.91 gallons of milk sold on those days with a standard deviation of 33.376. 10 (total) Saturdays and Sundays are sampled and the average number of gallons sold is 377.74 with a standard deviation of 49.365. Construct a 99% confidence interval to estimate the...
(A) As a current or future business owner, reflect on what new information you have learned...
(A) As a current or future business owner, reflect on what new information you have learned in this unit that will impact how you will run or would plan to run your businesses. For example, has anything you have read or discussed changed what business area you are interested in or altered your conceptions of how you run or might run your business?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT