User Account

All Pages

What is the predicted revenue

Assignment Help Finance Basics
Reference no: EM131439265

Question: The Radio Shop sells two popular models of portable sport radios, model A and model B. The sales of these products are not independent of each other (in economics, we call these substitutable products, because if the price of one increases, sales of the other will increase). 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 = 20 - 0.62PA + 0.30PB
                  NA = 29 + 0.10PA - 0.60PB

a. Construct a model for the total revenue and implement it on a spreadsheet.

b. What is the predicted revenue if PA = +18 and PB = +30? What if the prices are PA = +25 and PB = +50?

 

Reference no: EM131439265

Questions Cloud

Describe one weakness of situational leadership theory : LDR-802: Discussion Question- Briefly describe one weakness of situational leadership theory. Is this concern valid? Why or why not?
What are new features of the minimax search : 1. What is minimax algorithm and how does it work? In compared to previous uninformed search and heuristics search 2. What are new features of the minimax search?
Which leadership theory discussed so far you would you use : LDR-802: Explain which leadership theory discussed so far you would you use to motivate this person. Why would this theory be the best choice for the situation?
What purpose could role plays serve for individual members : How could the use of role plays among group members facilitate the goals of early and transition stage groups? What purpose could role plays serve for individual members and for the group as a whole?
What is the predicted revenue : The Radio Shop sells two popular models of portable sport radios, model A and model B. The sales of these products are not independent of each other (in economics, we call these substitutable products, because if the price of one increases, sales ..
Essay about zora neale hurston : Need an essay about "Zora Neale hurston" a black activist woman - one page only, MLA style, Introduction paragraph is just the thisis with three parallel controls.
What is the most significant adaptation a leader may make : LDR-802: Discern how followers' perceptions of a leader using a leader-member exchange (LMX) leadership theory can cause dissention within the group. What is the most significant adaptation a leader may make to avoid this? Why?
Describe the most significant strength of your style : LDR-802: Describe the most significant strength of your style and how you can best leverage it to improve your leadership skills. Why is your style better than the opposite style?
Compare between magnetic and solid-state storage : Compare between Magnetic and Solid-State Storage in terms of advantages and disadvantages. Explain the two approaches to programming.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the depreciation tax shield for this project

The machine falls into the MACRS 3 year class life category. Assume a tax rate of 30% a discount rate of 12%.

  Discuss some of techniques available to reduce risk exposure

Give two reasons stockholders might be indifferent between owning the stock of a firm with volatile cash flows and that of a firm with stable cash flows.

  A currency trader observe

A currency trader observes that in the spot exchange market

  If d 150 g which is constant 53 and p 56 what is the

if d 1.50 g which is constant 5.3 and p 56 what is the stocks expected capital gains yield for the coming year?a.

  Prepare a multiple step income statement

Which of the following statements is NOT an objective of financial reporting? An increase in inventory balance would be reported in a statement of cash flows using the indirect method

  At what price would a limit order be placed to assure a

consider an investor who purchased a stock at 100 per share. the current market price is 125. at what price would a

  Independent of life expectancy

What is the likelihood that a country has a life expectancy above 65 if per capita income is below US$1000? Is per capita income independent of life expectancy? Use a Contingency Table.

  Future developments and future of financial management

"Future Developments and Future of Financial Management"  Please respond to the following:

  A firm buys on terms of 28 net 45 days it does not take

a firm buys on terms of 28 net 45 days it does not take discounts and it actually pays after 58 days. what is the

  Genetech has 2000000 in assets have decided to finance 30

genetech has 2000000 in assets have decided to finance 30 with long-term financing 13 rate and 70 with short-term

  What are the classifications for depository institutions

What is redlining? How is the Community Reinvestment Act supposed to affect it?- What are the classifications for depository institutions and the ratings under the current regulations?

  The price paid by investors hcs marginal tax rate is 30

hettenhouse companys hc perpetual preferred stock sells for 105.50 per share and it pays a 9.50 annual dividend. if the

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd