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. De demand for the Sky Eagle P-selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon D-227-0.60P + 0.35PM DH-275+0.10P-0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of Pg and P only) for these two models, and find the prices (in dollars) that maximizes revenue. (Round your answers to two decimal places.) R-227Ps - 0.6(Ps)² +0.45PPH+275PH-0.64(PH)² Revenue Price for Sky Eagle Price for Horizon Optimal revenue P₁-S PH-S R$ x x x

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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:

- \( D_S \) = demand for the Sky Eagle  
- \( P_S \) = selling price of the Sky Eagle  
- \( D_H \) = demand for the Horizon  
- \( P_H \) = selling price of the Horizon  

\[
D_S = 227 - 0.60P_S + 0.35P_H \\
D_H = 275 + 0.10P_S - 0.64P_H 
\]

The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function \( R \) (in terms of \( P_S \) and \( P_H \) only) for these two models, and find the prices (in dollars) that maximize revenue. (Round your answers to two decimal places.)

**Revenue Function:**

\[ 
R = 227P_S - 0.6(P_S)^2 + 0.35P_SP_H + 275P_H + 0.10P_SP_H - 0.64(P_H)^2 
\]

**To Be Determined:**
- Price for Sky Eagle \( P_S \) = $ [ ]$
- Price for Horizon \( P_H \) = $ [ ]$
- Optimal revenue \( R \) = $ [ ]$

(Note: Boxes with an "X" next to them indicate inputs/values that need to be calculated or filled in.)
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: - \( D_S \) = demand for the Sky Eagle - \( P_S \) = selling price of the Sky Eagle - \( D_H \) = demand for the Horizon - \( P_H \) = selling price of the Horizon \[ D_S = 227 - 0.60P_S + 0.35P_H \\ D_H = 275 + 0.10P_S - 0.64P_H \] The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function \( R \) (in terms of \( P_S \) and \( P_H \) only) for these two models, and find the prices (in dollars) that maximize revenue. (Round your answers to two decimal places.) **Revenue Function:** \[ R = 227P_S - 0.6(P_S)^2 + 0.35P_SP_H + 275P_H + 0.10P_SP_H - 0.64(P_H)^2 \] **To Be Determined:** - Price for Sky Eagle \( P_S \) = $ [ ]$ - Price for Horizon \( P_H \) = $ [ ]$ - Optimal revenue \( R \) = $ [ ]$ (Note: Boxes with an "X" next to them indicate inputs/values that need to be calculated or filled in.)
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