Relationships in the quantity sold and prices of model

Assignment Help Operation Management
Reference no: EM131151805

The Camera Shop sells two popular models of digital cameras. The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model:

   NA = 192 - 0.5PA + 0.25PB

   NB = 305 + 0.08PA - 0.6PB

Construct a model for the total revenue and implement it on a spreadsheet. Develop two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in increments of $10.

Max profit occurs at Camera A price of $.

Max profit occurs at Camera B price of $.

Reference no: EM131151805

Questions Cloud

Debt related to the chemicals division : Assume the role of Nick and write an email to your uncle explaining why you think the company needs to get out of chemicals. You think the chemicals division could be sold for around half a million dollars. You currently have about $740,000 in debt r..
Product and promotional decisions : Now that the product and promotional decisions have been made for the new product, Michelle is concerned about the pricing of the new product and the distribution channels that will be used to make the product available to customers. She has asked..
What is the purpose of this restriction : Research three trade restrictions currently in place by the U.S. and basis the research, answer the following questions: Are these restrictions a tariff, subsidy, import restraint, voluntary export restraint, or embargo? What is the purpose of this r..
Description of their primary customers : Products and/or services they provide, and how they meet the needs of customers. Description of their primary customers. Why you chose them for this project
Relationships in the quantity sold and prices of model : The Camera Shop sells two popular models of digital cameras. The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. A study of price and sales data shows the follo..
Solutions to united states current organ alocation policy : Suggest some better solutions to the united states current organ alocation policy. Explain your proposal and use research to support your proposed plan. Be sure o properly cite your sources using apa format. Explain your answer and provide exa..
How can we brush up on our writing skills : What are some tips we can share with each other that will help us become even better writers now that we have some experience writing in the course?
Principles of servant leadership employed by the leader : Write a 500-750 word paper that addresses the following. Summary of the principles of servant leadership employed by the leader. Specific examples to illustrate the leader's application of servant leadership principles. Information about the unique w..
Factors to implement in a dafting of professional document : When professional writers send written communication to business people from diverse cultures, writing clearly is imperative.

Reviews

Write a Review

Operation Management Questions & Answers

  Morgan was persuaded that group discussion

Morgan was persuaded that group discussion and group decision making could work at Hoffman Restaurant, where she was manager. Once back at the restaurant, she called together thirty servers and relayed this message.

  What is the reduction in work-in-process value

If the process makes on unit each hour on average and each unit is worth $1,500, what is the reduction in work-in-process value?

  Compare the key difference of the evolving business models

From the case study, evaluate the efficiency of eBay's evolving business model within the retail auction industry. Next, compare the key difference of the evolving business models of both eBay and its major competitors.

  At what point should managers tell the employee who they are

At what point should managers tell the employee who they are? If managers observe something that goes against the company’s mission, which conflict intention/style would they use? Support your answer with examples.

  Approaches to organisational strategy and human resource

Analyze both the conventional and alternative approaches to organisational strategy and human resource. What role do people issue play in how strategy is made , developed and executed in an organization.

  What is the future of warfare

In your opinion, what is the future of warfare? What will be the key elements of warfare in the mid-21st century? What will be the important capabilities that determine success or failure in future warfare?

  Describe the basic purpose of subrogation

Raymond, a claim representative, was assigned to a claim involving a break-in at a business and theft of property from the insured premises. The police report indicated that the window at the premises had been broken from the inside, but there was no..

  Describe several different double binds

Lawrence and Rose describe several different "double binds" that can hamper campaign strategy for female candidates. The authors consider how such double binds might have been a concern in Hillary Clinton's 2008 presidential campaign. Describe what i..

  Sales is correlated with its advertising expenditure

A large retailer has noted that its revenue from sales is correlated with its advertising expenditure. Use excel and obtain a regression equation for the revenue data (as a function of advertising expenditure). b) What's the estimated average revenue..

  The senior executives forecast of demand for services

The senior executives' forecast of demand for services must evaluate whether TNH should expand into target markets such as Winnipeg and Toronto. What technique(s) should the TNH forecasting department use to produce forecasts that would support this ..

  Discuss circumstances when outsourcing should be considered

Discuss circumstances when outsourcing should be considered, and whether outsourcing will add to the competitive advantage of a firm. Please include the financial as well as the human considerations that should be included in the decision process.

  Discuss some of the pros and cons of approach

Leaders in many of today's organizations use the results of personality testing to make hiring and promotion decisions. Discuss some of the pros and cons of this approach.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd