Demand = -1.5 * price + 25 Moreover, sale of product A leads to sale of another product B of the same company. Additional data is as given below. Unit cost of A (Rs.) 3 Number of units of B with one A 20 Profit from sale of one unit of B (Rs.) 0.85 Develop the optimization model for pricing of A to maximize total profit earned and find the optimal price.

Demand = -1.5 * price + 25 Moreover, sale of product A leads to sale of another product B of the same company. Additional data is as given below. Unit cost of A (Rs.) 3 Number of units of B with one A 20 Profit from sale of one unit of B (Rs.) 0.85 Develop the optimization model for pricing of A to maximize total profit earned and find the optimal price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

5. Profit: iPhones Assume that Apple's marginal cost function for the manufacture of x 32GB iPhone 6's per hour at the Foxconn Technology Group is C'(x)=160-0.002.x and that Apple sells iPhone 6's for an average wholesale price of $580 each. a. Find the cost function C (x)
Note: The solution should not be hand written.
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 - 0.02 x Demand for an annual printing of this particular product. The fixed costs per year (ie., per printing) = $46,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 3,000 units per year. The maximum profit that can be achieved is $. (Round to the nearest dollar.) The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.) Enter your answer in each of the answer boxes.
A manufacturing company produces ACME Standard Widgets having a fixed cost of $50 and variable cost of $8 per unit. Sales history indicates that the sales price in dollars, P, varies with the demand, D, by the function: P = 200 - 0.1D Determine the following: Optimum demand for the widgets. Maximum profit that can be made. Determine the range of demands for which the company is profitable.
At a price of R 8 per item consumers will buy 1500 units. If the company increases the price by R1 per item, the number of items that the consumers will buy will decrease by 75. i) Does the function described represent a supply or demand curve? Find the formula of the function given that it is a linear function. ii) Find the price that will maximize the revenue.
If the price is 600, the demand is 30, and the unit cost of a computer per day is 55, the profit is Answer: 16,350 x (5,100) Question 5 If the price is 600, the demand is 65, and the unit cost of a computer per day is 40, the profit is Answer: 36,400 x (24,200) Question 6 If the price is 400, the demand is 50, and the unit cost of a computer per day is 65, the profit is Answer: 16,750 x (3,900) Question 7 If the price is 600, the demand is 65, and the unit cost of a computer per day is 70, the profit is Answer: 34,450 x (20,300)
A large company in the communication and publishing industry hs quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.01 xDemand for an annual printing of this particular product. The foxed costs per year (ie. per printing) = $4T 000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 7,000 units per year. The maximum profit that can be achieved is S. (Round to the nearest dolar.) The unit price at the point of optimal demand is S per unit (Round to the nearest cent)
For a particular jacket that is ordered for the Holidays, the Variable Cost = $150 and the jacket will be priced for sale at $250. It is estimated that the Average Demand will be 5000 units. If the jacket does not sell at the retail price during the Holidays time period, then it will be sold to an overstock discounter for $30. Given the relationship between Optimal Quantity and Average Demand, should the Optimal Quantity for this jacket be:
The price p and the quantity x sold of a certain product obey the demand equation below. x= -8p +176, 0sps22 (a) Express the revenue R as a function of x. (b) What is the revenue if 144 units are sold? (c) What quantity x maximizes revenue? What is the maximum revenue? (d) What price should the company charge to maximize revenue? (e) What price should the company charge to earn at least $576 in revenue? (a) R(x) =
How can you calculate this question step by step? Thank you!
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
ammm. 11