Business question on profit maximization

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Reference no: EM1367953

Business question: Profit Maximization

ABC Inc. determined through regression analysis that its sales (S) are a function of the amount of advertising (measured in units) in two different media. This relationship is given by the following equation (X=newspapers, Y=magazines):

S(X,Y) = 200X + 100Y - 10Xsq - 20Ysq + 20XY

_{1. What is the level of newspaper and magazine advertising that maximizes the firms sales?}

_{2. What is the firms sales at the optimal values of newspapers and magazine advertising determined in part 1?}

Reference no: EM1367953

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