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

Define conflict within a project team, What are the consequences of ignorin...

What are the consequences of ignoring a conflict within a project team?

Define goal is to develop a strong talent management program, The goal is t...

The goal is to develop a strong talent management program globally to develop and retain talent that you have been losing to competitors. Discuss the strategies that you might use

Explain the variable cost to produce each unit, Assume a fixed cost for a p...

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the followi

Assignment, propose process improvement, and justify your reasons for the i...

propose process improvement, and justify your reasons for the improvements, to the flowchart for answering calls

Explain economic aspect of the triple bottom line concept, A firm's busines...

A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept.

Compute the expected weeks of supply, The owner of Genuine Reproductions (G...

The owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at

Describe worker adjustment and retraining notification act, Outline the pro...

Outline the provisions of the Worker Adjustment and Retraining Notification Act (WARN) of 1988 stating its rules, liabilities, and loopholes. Discuss the reasons why this act was c

Explain procedure of job evaluation, Explain procedure of job evaluation. ...

Explain procedure of job evaluation. Procedure of Job Evaluation:   The procedure for job evaluation is as specified below: (i)  Know the jobs to evaluate. (ii) Selec

Explain different forecasting techniques, An analyst must decide between tw...

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is

Explain demand is estimated to be normally distributed, Henrique's Correa's...

Henrique's Correa's bakery prepares all its cakes between 4am and 6am so they will be fresh when customers arrive. Day-old cakes are virtually always sold but at a 50% discount off

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