Calculate the price to maximize revenue

Reference no: EM1365241

Disco is developing a new hard drive for use in HAL-compatible PC's They estimate the demand schedule for the new product will be as follows:

Price: 100 80 60 40 20 0
Quantity (000): 0 30 60 90 120 150

The fixed cost will be $ 1000
Unit variable cost will be $ 40.00 per unit.

(a) What is the price that will maximize revenue?
(b) What is the price that will maximize profit?
(c) With the objective of maximizing market penetration in the first year after product introduction, what is the lowest price at which the profit will be no worse than zero?

Reference no: EM1365241

Questions Cloud

Sector-industry analysis : Provide a sector/industry analysis and narrative to start a health food cafe that serves whole food and organic food. Please also include sources.

What methods of performance appraisal do you use : What method of performance appraisal does your current or previous workplace use and what are some positive and negative aspects to this method?

What is the stopping distance of the car : What is the stopping distance of the car. What is the initial (horizontal) velocity of the ball.

Financial interests : How is the Tylenol case similar to or different from Ford and Firestone's linkage with dangerous tires or WorldCom,

Calculate the price to maximize revenue : Disco is making a new hard drive for use in HAL-compatible PC's They estimate the demand schedule for new product will be as follows:

Computing regular corporate tax and corporate amt : What is Gigantic Corporation's net tax liability if its taxable income is $325,000 and it has a general business credit of $125,000?

What beat frequency results : A 15 g rifle bullet traveling 190 m/s buries itself in a 3.8 kg pendulum hanging on a 3 m long string, that makes the pendulum swing upward in an arc. Determine the horizontal component of the pendulum's maximum displacement.

Which technology is cheapest for each level of output : Suppose the firm is operation in a high-way country, where capital cost is $100 per unit per day and labor cost is $80 per workers per day. which technology is cheapest for each level of output.

Required production-raw material purchases : Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. One units of raw material are required to produce each unit of finished product.

User Account

All Pages