Find the prices that maximize revenue. Do not round intermediate calculations. If required, round your answers to two decimal places. Optimal Solution: Selling price of the Sky Eagle (Ps): $ Selling price of the Horizon (PH): $ Total Revenue: $
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The
Ds = 230 - 0.5 Ps + 0.38 PH
DH = 260 + 0.1 Ps - 0.62 PH
The store wishes to determine the selling price that maximizes revenue for these two products. Select the revenue function for these two models. Choose the correct answer below.
| (i) | Ps Ds + PHDH = PH(260 - 0.1 Ps - 0.62 PH) + Ps(230 - 0.5 Ps + 0.38 PH) |
| (ii) | Ps Ds - PH DH = Ps(230 - 0.5 Ps + 0.38 PH) - PH(260 - 0.1 Ps - 0.62 PH) |
| (iii) | Ps Ds + PH DH = Ps(230 - 0.5 Ps + 0.38 PH) + PH(260 + 0.1 Ps - 0.62 PH) |
| (iv) | Ps Ds - PH DH = Ps(230 + 0.5 Ps + 0.38 PH) - PH(260 - 0.1 Ps - 0.62 PH) |
Answer: Option 3
Find the prices that maximize revenue.
Do not round intermediate calculations. If required, round your answers to two decimal places.
Optimal Solution:
Selling price of the Sky Eagle (Ps): $
Selling price of the Horizon (PH): $
Total Revenue: $
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