Whole sale cost of a roll

Assignment Help Finance Basics

Reference no: EM13753885

The I. Kruger Paint and Wallpaper Store is a large retail distributor of the Supertrex brand of vinyl wall-coverings. Kruger will enhance its citywide image in Miami if it can outsell other local stores in total number of rolls of Supertrex next year. If is able to estimate the demand functions as follows:

Number of rolls of Supertrex sold = 20 x Dollars spent on advertising + 6.8 x Dollars spent on in-store displays + 12 x Dollars invested in on-hand wallpaper inventory - $65.000 x marke-up taken above whole sale cost of a roll.

The store budgets a total of $17,000 for advertising, in-store displays and on-hand inventory of Supertrex for next year. It decides it must spend at least $3,000 on advertising; in addition, at least 5% of the amount invested in on-hand inventory should be devoted to displays. Markups on Supertrex seen at other local stores range from 20% to 45%. Kruger decides that its markup had best be in this range as well.

a) Formulate as an LP problem

b) Solve the problem

c) What is the difficulty with the answer?

d) What constraint would you add?

Reference no: EM13753885

Questions Cloud

Why was st thomas more executed : Why was st. Thomas More executed?

Advising the clambake company on their future is : Write a one-page (250-word) paper advising the Clambake Company on their future IS. Be sure to discuss the advantages and disadvantages and your rationale for the system you recommend

How can renaissance be seen as a continuation of middle ages : How can the Renaissance be seen as a continuation of the Middle Ages?

Develop an erm and eerm : Develop an ERM and EERM for the following case study. Include: Entities (incluing names), Relationships (including names), An airline has multiple planes, Each plane goes on multiple flights

Whole sale cost of a roll : Number of rolls of Supertrex sold = 20 x Dollars spent on advertising + 6.8 x Dollars spent on in-store displays + 12 x Dollars invested in on-hand wallpaper inventory - $65.000 x marke-up taken above whole sale cost of a roll.

How the peer group and culture influence child development : Explain how the peer group and culture influence child development - "selection effect"

What the effectsof electronic health record on health care : What are the effectsof Electronic Health Record on health care

Discussion on an overview of financial management : In your judgment, what were the principal causes of the recent financial crisis and Great Recession? Would you include Government policies that encouraged housing purchases for those who could not afford them

Describe basic computer components and their uses : Explores computer literacy topics in a very basic, hands-on environment. Presents the fundamentals of computer hardware and software, the Internet, operating systems, and current application software within Microsoft Office Suite. Describe basic c..

User Account

All Pages