Determine the optimal selling price, Operation Management

Assignment Help:

A manufacturer sells 150 tables a month at the price of $200 each. For each $1 decrease in price, he can sell 25 more tables. Each table costs $125 to make.

(a) The demand (price) function is assumed to be linear: p(x) = mx + b, where p is the price of each table and x is the amount of tables produced. Find the expression for the demand function.

(b) The revenue function, R(x) = xp(x), is the revenue generated from selling x tables. Write the expression for the revenue function.

(c) Recall that pro t is revenue minus costs. Express monthly pro t as a function of the number of tables sold and draw a graph of the pro t.

(d) Determine the optimal selling price; i.e. at what price should the tables be sold in order to maximize pro t?


Related Discussions:- Determine the optimal selling price

Explain discussions of health law, What is "authentication" in terms of ele...

What is "authentication" in terms of electronic signatures, and why is it relevant to discussions of health law?

After working for 30 years, After working for 30 years, Ramjee Somjee Dutt ...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his busine

Reference Book, Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge...

Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge and Management. Subject is there Materials & Production Management, but i want a perfect reference book where i get all

What are programmed and non-programmed decisions, What are programmed and n...

What are programmed and non-programmed decisions? Programmed decisions are which made in accordance with some procedure, rule or habit. Non-Programmed decisions are those which

Explain what is the production, A local market research firm has just won a...

A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each

Explain what are cost and revenue relationships, Consider this statement: "...

Consider this statement: "To make effective decisions, managers must use basic cost and revenue relationships." What are cost and revenue relationships? Describe them in detail.

Define the concept of a career, Discuss the concept of a career. What are t...

Discuss the concept of a career. What are the Four Career Stages- List each one with its specific characteristics

Define customer driven analytic to make managerial decisions, 1) What assum...

1) What assumptions are necessary when using customer driven analytics to make managerial decisions? 2) How does the IT strategy of 7/11 influence other aspects of the business

Rules related to the design of tools and equipment, Related to the  Desig...

Related to the  Design  of Tools and Equipment: 1.        The hands should  be relieved of all work  that can  done more  advantageously by a jig a  fixture  or a foot operate

Define mathematics tends to lull the unsuspecting, C.W. Churchman once said...

C.W. Churchman once said that "mathematics tends to lull the unsuspecting into believing that he who thinks elaborately thinks well." Do you think that the best QA models are the o

Write Your Message!

Captcha
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