Maximizing revenues for specific year

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Reference no: EM13141455

Premium Windows makes one type of standard window for residential buildings. Premium believes that if it prices each window at $60, then it will sell 2,500 windows in January and that sales will increase by 100 units a month through August. Sales would then decrease at the rate of 150 units per month through December. However, if Premium prices each window at $57, then sales for January would be 2,600 units. Sales would increase at the rate of 125 per unit per month through August and then decrease at the rate of 150 units per month through December.

A. Which price should Premium choose, $57 or $60, to maximize its revenues for the year?

B. What other factors should Premium consider before making its pricing decision?

Reference no: EM13141455

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