Maximizing revenues from sales

Assignment Help International Economics

Reference no: EM1376390

Imagine you are a manager at the DaimlerChrysler. Daimler Chrysler has lost money on Smart car since 1st model rolled off the assembly line in 1998. By bringing its little car into the huge U.S. market, the firm hopes to reverse its fortunes. Former race car driver Roger Penske has signed on to develop a network of up to 50 Smart dealerships across the U.S. Penske says the car is not just smart, it is also safe. If your marketing department estimates that the annual demand for the Smart Car is Q = 200,000 8.0P, what price should you charge in order to maximize revenues from sales of the Smart Car?

Reference no: EM1376390

Questions Cloud

Valuation of european call option : A European Call Option on a non dividend paying stock where the stock price is $40, strike price is $40, the risk free rate is 4 percent per year, the volatility is 30 percent per year,

Immigration of production workers : Several industrialized nations such as the U.S. attempt to seriously restrict immigration of production workers, but are more open to immigrants who are highly skilled.

Advantages of buying imports versus buying domestic products : Briefly discuss the advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.

Calculating the forward discount : Calculate the forward discount or Premium for Mexican peso whose ninety day forward rate is $.102 and spot rate is $ .10.

Maximizing revenues from sales : Imagine you are a manager at the DaimlerChrysler. Daimler Chrysler has lost money on Smart car since 1st model rolled off the assembly line in 1998.

Determining economic profit : Sydney wants start a new business, but would have to give up a job with a total compensation of $100,000 every year. After researching new business opportunity, Syndey developed the following estimates.

Efficiency difference in government bureaus and private firm : How do the government bureaus different from private companies discuss why is there good reason to believe that bureaucrats will seek to supply more than efficient level of their output in any year?

Concepts of price elasticities : Groupon is a popular group purchasing and daily deals website. In a current promotion, a local restaurant to sold buffet vouchers at a step discount on Groupon's website.

Discuss major cross cultural differences : Big businesses and small businesses now compete in a truly global economy. To be successful in another nation it is essential to understand and appreciate the cultural differences that exist.

User Account

All Pages