Question
An electronics store sells 2 models of television. The sales of these two models, x and...
An electronics store sells 2 models of television. The sales of these two models, x and y, are dependent, that is, if the price of one increases, the demand for the other increases. A study is made to find the relationship between the demand (D) and the price (P) in order to maximize the revenue from the products. The result of the study is shown below. Dx=476-0.54Px+0.22Py Dy=601+0.12Px-0.54Py
A. construct a model for the total revenue and implement it on a spreadsheet.
B. Develop a 2 way data table to estimate the optimal price of each of the two products in order to maximize the total revenue. Vary price of each product from $600 to $900 in increments of $50.
1. What is the maximum revenue?
2. What is the optimal price for model x?
3. What is the optimal price for model y?
Please show excel formulas.
Homework Answers
Answer #1
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