Question

A company estimates that it will sell N*(x)*units of a
product after spending $*x* thousand on advertising, as
given by: N(x) = -0.25x^4 + 13x^3 - 180x^2 + 10,000. 15<x<24

When is the rate of change of sales increasing and when is it decreasing?

What is the point of diminishing returns and the maximum rate of change of sales?

Answer #1

A marine manufacturer will sell N(x) power boats after spending
$x thousand on advertising is given by N(x)=1000-(3780/x) for
5≤x≤30
Find N'(x) with appropriate units. Explain what the first
derivative means in this situation. (By hand )
Find the number of power boats sold and the instantaneous
rate of sales after spending $9,000 on advertising. Write a brief
explanation of these results.
Use a table of values to sketch a well labelled graph of this
function between $5,000 and $30,000....

1. When $x thousand is spent on advertising a product, the sales
(number of units sold) is given by S(x)= -x^3+9x^2+21x+100 for
0<=x<=10. Which of the following is not correct? Optional
Answers:
1. Sales has a global (absolute) minimum at x=0
2. Sales has a global (absolute) maximum at x=7
3. Rate of sales has a global (absolute) maximum at x=3
4. Rate of sales has a global (absolute) minimum at x=0

A company estimates that if x thousand cedis is spent
on the marketing of a certain product, Q(x)
thousand units of the product will be sold, where Q(x) = 7x
27 + x
2
.
(a) Determine the domain of the function defined. [2 Marks]
(b) Determine how much of the product will be sold if the company
does not spend any money on
marketing. [2 Marks]
(c) Determine the amount of money the company must spend on
marketing to...

The manager of Beta Company is considering to sell its new
product at the price of $500 and the price elasticity of demand at
the price range is -0.8. (i) What is the marginal revenue from the
sales of the product at the demand point? and (ii) As a consultant
to this company, are you going to recommend to the company a higher
price or a lower price than $500?
Answers:
a) MR = +$125, and recommend a lower price....

Question 108
For any advertised product, it can be assumed that a point is
eventually reached at which additional advertising produces little
or no additional sales. This is proof that advertising is:
subject to the law of diminishing returns.
governed by the law of accelerating change.
nonmeasurable in the context of sales numbers and figures.
subject to the law of increasing returns
Question 109
Which of the following is a variation of cost-oriented
pricing?
Odd-even pricing
Bundle pricing
Rate-of-return pricing...

Suppose ABC Company is introducing a new product. They expect to
sell 1,000 units per year at a price of $70 for five years. Costs
of goods sold are estimated to be 65% of sales, fixed costs will be
$3,000 per year and depreciation will be $10,000 per year. If the
tax rate is 21%, construct a proforma income statement in
Excel.

Product X is currently selling at a retail price of $10.99.
Retail margins on the product are 40%, while wholesalers take a 15%
margin. Product X and its competitors sell at total of 200 million
unites annually. Product X has 35% of this market.
Variable manufacturing costs for Product X are $3.10 per unit.
Fixed manufacturing costs are $700,000.
The advertising budget for Product X is $4,500,000. Product
manager's salary and expenses total $85,000. Sales are paid
entirely by a...

In 2018, X Company expects to produce and sell 62,000 units of
its only product for $34.14. The following are budgeted variable
costs per unit:
Direct materials $4.98
Direct labor 5.19
Variable overhead 4.78
Variable selling and administrative 5.31
Total 20.26
Budgeted fixed overhead for 2018 is $181,040, and budgeted
fixed selling and administrative expenses are $173,600.
What is X Company's budgeted contribution margin rate for
2018?

A company's revenue from selling x units of an item is
given as R=1900x−2x^2. If sales are increasing at the rate of 50
units per day, how rapidly is revenue increasing (in dollars per
day) when 360 units have been sold?
? dollars per day
The cost of producing x units of stuffed alligator toys is
C(x)=0.002x^2+7x+5000. Find the marginal cost at the production
level of 1000 units.
? dollars/unit
Suppose a product's revenue function is given by R(q)=−7q^2+600q
,...

X Company is considering launching a new product. After
conducting a market research study that cost $4,600, the company
estimates sales of 8,500 units in each of the next 4 years, with a
contribution margin of $6.00 per unit. Additional fixed costs will
be $17,160. Equipment costing $120,000 will have to be purchased;
the equipment will have no salvage value at the end of 4
years.
What is the internal rate of return of launching the new
product? [Submit your rate...

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