Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. Ds = demand for the Sky Eagle Ps = selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon = Ds = 226 -0.60PS + 0.35PH DH = 265 +0.10Ps - 0.64Pp H The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of P and P only) for these two models, and find the prices (in dollars) s PH that maximizes revenue. (Round your answers to two decimal places.) Revenue R = Price for Sky Eagle P = $ S Price for Horizon PH = $ Optimal revenue R = $
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. Ds = demand for the Sky Eagle Ps = selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon = Ds = 226 -0.60PS + 0.35PH DH = 265 +0.10Ps - 0.64Pp H The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of P and P only) for these two models, and find the prices (in dollars) s PH that maximizes revenue. (Round your answers to two decimal places.) Revenue R = Price for Sky Eagle P = $ S Price for Horizon PH = $ Optimal revenue R = $
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section11.3: Financial Models
Problem 27P
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![Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows.
Ds = demand for the Sky Eagle
Ps = selling price of the Sky Eagle
DH
demand for the Horizon
PH selling price of the Horizon
=
Ds = 226 -0.60PS + 0.35PH
DH = 265 +0.10Ps - 0.64Pp
H
The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of P and P only) for these two models, and find the prices (in dollars)
s PH
that maximizes revenue. (Round your answers to two decimal places.)
Revenue
R
=
Price for Sky Eagle
P
=
$
S
Price for Horizon
PH
=
$
Optimal revenue
R =
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb60d532a-9aac-45a2-a466-49da1bb79676%2F0b866fc2-eaa7-4f24-a1b4-7a331b509ad6%2Fmzaa1lgc_processed.png&w=3840&q=75)
Transcribed Image Text:Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows.
Ds = demand for the Sky Eagle
Ps = selling price of the Sky Eagle
DH
demand for the Horizon
PH selling price of the Horizon
=
Ds = 226 -0.60PS + 0.35PH
DH = 265 +0.10Ps - 0.64Pp
H
The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of P and P only) for these two models, and find the prices (in dollars)
s PH
that maximizes revenue. (Round your answers to two decimal places.)
Revenue
R
=
Price for Sky Eagle
P
=
$
S
Price for Horizon
PH
=
$
Optimal revenue
R =
$
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