Two popular models of digital cameras

Assignment Help Operation Management

Reference no: EM131121419

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 = 190 - 0.6PA + 0.35PB NB = 302 + 0.07PA - 0.5PB 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: EM131121419

Questions Cloud

Significant differences between the movie and the novel : On the other hand, Heller was happily surprised by Hollywood’s version of Catch-22. Heller had prepared himself for a movie that exploited the sexual aspects of the novel and glossed over his theme. However, just because he was surprised does not mea..

Explain the role of contingency planning in health care : Explain the role of contingency planning in health care. Should every health care organization formulate contingency plans? Why, or why not? Answer should be at least 200 words and sources should be cited.

Ensure continued and improved customer service : You are the founder and president of a small janitorial and landscaping service that employs 100 people. You anticipate hiring another 25 people over the next 8-12 months, due to increasing new contracts with local businesses and residences that requ..

About the sales strategies : Sales Strategies Why do companies use the sales and marketing strategies they do? How do they reach the desired target audiences?

Two popular models of digital cameras : 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 calle..

Use complex integrating mechanisms : When does an organization need to use complex integrating mechanisms? Why? Under what conditions is an organization likely to prefer (a) a mechanistic structure, (b) an organic structure, or (c) elements of both?

Explain the key role of the service delivery portion : Explain the key role of the service delivery portion of the value chain in medicine today. Provide at least two specific examples of value-adding service delivery strategies that you might consider implementing in your own health care facility or pro..

Difference between mass customization and build to order : What are the 5 steps in marketing research approach. What is market segmentation, and why is it important? Explain difference between mass customization and build to order.

Discuss two forms of healthcare delivery : Discuss two forms of healthcare delivery. What are the advantages and disadvantages of using this type of delivery? How are they financed? Your response should be at least 300 words in length and sources must be referenced.

User Account

All Pages