Reference no: EM132410770

A restaurant faces very high demand for its signature mousse desserts in the evening but is less busy during the day. Its manager estimates that inverse demand functions are pe = 32 - Qe in the evening and pd = 22 - Qd during the day, where e and d denote evening and daytime. The marginal cost of producing its dessert evening, MCe, is $8. The marginal cost of producing its dessert daytime, MCd, is $4. There is no fixed cost of producing dessert.

Create a spreadsheet with the column headings Qe, Pe, TRe, MRe, TCe, MCe, πe, Qd, Pd, TRd, MRd, TCd, MCd, and πd. (note: πe is profit evening and πd indicates profit daytime) 

• What is the optimal prices for the dessert that the restaurant should charge during the evening hours?
• What is the optimal quantity for the dessert that the restaurant should produce during the evening hours?
• What is the total cost of producing the optimal quantity for the dessert during the evening hours?
• What is the maximum profit for the dessert that the restaurant should produce during the evening hours?
• What is the optimal prices for the dessert that the restaurant should charge during the daytime hours?
• What is the optimal quantity for the dessert that the restaurant should produce during the daytime hours?
• What is the total cost of producing the optimal quantity for the dessert during the daytime hours?
• What is the maximum profit for the dessert that the restaurant should produce during the daytime hours?