Homework Help is Here – Start Your Trial Now!
Business
Operations Management
following outcomes over the last seven months: Quantity Sold Price Advertising 8500 $ 2 $ 2,800 4700 $ 5 $ 200 5800 $ 3 $ 400 7400 $ 2 $ 500 6200 $ 5 $ 3,200 7300 $ 3 $ 1,800 5600 $ 4 $ 900 Regression (Equation) QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make. B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive

following outcomes over the last seven months: Quantity Sold Price Advertising 8500 $ 2 $ 2,800 4700 $ 5 $ 200 5800 $ 3 $ 400 7400 $ 2 $ 500 6200 $ 5 $ 3,200 7300 $ 3 $ 1,800 5600 $ 4 $ 900 Regression (Equation) QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make. B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

 Fresh Food has recently carried out a survey of the demand for their seasonal fruits. They observed the following
outcomes over the last seven months:
Quantity
Sold Price Advertising
8500 $ 2 $ 2,800
4700 $ 5 $ 200
5800 $ 3 $ 400
7400 $ 2 $ 500
6200 $ 5 $ 3,200
7300 $ 3 $ 1,800
5600 $ 4 $ 900
Regression (Equation)
QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising
A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make.
B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive
in terms of revenues and profits?

Expert Solution
steps

Step by step

Solved in 5 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS