Question

The John Deere Company has found that the revenue from sales of heavy-duty tractors is a...

The John Deere Company has found that the revenue from sales of heavy-duty tractors is a function of the unit price p that it charges. If the revenue R is R(p) = 0.5p2 + 1900p , what unit price p should be charged to maximize revenue? What is the maximum revenue? What recommendations would you give the John Deere Company?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
John sells necklaces on the beach. He sold the necklaces for $10 each and his sales...
John sells necklaces on the beach. He sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that the average decreased by two sales per day. Assume the price is a linear function of the demand. If the material for each necklace costs John $6, what should the selling price be to maximize his profit?
7. A furniture company is faced with the following the price-demand function, revenue function, and cost...
7. A furniture company is faced with the following the price-demand function, revenue function, and cost function: p(x) = 90 - 5x R(x) = xp(x) C(x) = 250 + 15x where p(x) is the price in dollars at which x hundred chairs can be sold and R(x) and C(x) are in thousands of dollars. (a) Give the revenue R for producing 1200 chairs. (b) Find the production level that gives the break-even point. (c) Find the production level that gives...
Suppose that the total revenue in dollars from the sales of x hundred televisions is given...
Suppose that the total revenue in dollars from the sales of x hundred televisions is given by R(x)=-100(x^2-16x) a) Find the marginal revenue function b) Find R[Prime](9) c) If the manufacturer wants to maximize revenue , should he make more or less than 900 televisions? Why? d) What does R[prime](9) mean and what does it predict? Compare this with actual total revenue.
A video game console manufacturer determines that in order to sell x units of a new...
A video game console manufacturer determines that in order to sell x units of a new console, the price per unit, in dollars, must be p=1750-2x . The manufacturer also determines that the total cost of producing x units is given by (Cx)=22500+15x . Find the total revenue function R(x) ? Find the total profit function P(x) ? How many units must the company produce and sell in order to maximize profit? (Use the second derivative test to verify this...
The demand for tickets to an amusement park is given by p=70−0.04q, where p is the...
The demand for tickets to an amusement park is given by p=70−0.04q, where p is the price of a ticket in dollars and q is the number of people attending at that price. (a) What price generates an attendance of 1500 people? What is the total revenue at that price? What is the total revenue if the price is $20? (b) Write the revenue function as a function of attendance, q, at the amusement park. Use the multiplication sign in...
Suppose that the manufacturer of a gas clothes dryer has found that when the unit price...
Suppose that the manufacturer of a gas clothes dryer has found that when the unit price is p​ dollars, the revenue R​ (in dollars) is R(p)=−2p2+6,000p. ​(a) At what prices p is revenue​ zero? ​(b) For what range of prices will revenue exceed ​$500,000​?
The Pro Company is? decentralized, and divisions are considered investment centers. Watkins specializes in sports? equipment,...
The Pro Company is? decentralized, and divisions are considered investment centers. Watkins specializes in sports? equipment, and one division manufactures netting that is used for basketball? hoops, soccer? goals, and other sports equipment. The Netting Division reports the following information for a? heavy-duty basketball hoop? net: The Basketball Equipment Division can purchase a similar? heavy-duty net from an outside vendor for? $15 Sales Price per Unit $18 Variable Cost per Unit 6 Contribution Margin per Unit $12 Requirements 1. Determine...
Suppose a company has fixed costs of $2400 and variable costs per unit of 15 16...
Suppose a company has fixed costs of $2400 and variable costs per unit of 15 16 x + 1700 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1800 − 1 16 x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) (b) Find the maximum revenue. (c) Form the profit function P(x) from the cost and revenue functions. Find the maximum profit....
Assume that the quarterly demand for an SUV produced by an automobile company is Qd =...
Assume that the quarterly demand for an SUV produced by an automobile company is Qd = 150,000 – 1.5P, where Qd is quantity demanded and P is price per vehicle. A. Using the concept of elasticity of demand, what price should be charged to maximize revenue from sales of this SUV? Clearly show your steps and manual (hand and calculator) calculations. B. Derive the equation for total revenue for this product. Clearly show you steps. C Using (b) above, determine...
Jim owns a lawn care service. He would like to obtain a new heavy duty trailer...
Jim owns a lawn care service. He would like to obtain a new heavy duty trailer to haul his equipment and materials from job to job. He’s found one that will suit his needs. The purchase price is $8,500. Jim is in a 28% tax bracket and sales taxes are 5%. The cost of capital for Jim to purchase the trailer is 8%. The trailer qualifies for 5 year MACRS depreciation method. Jim intends on using the equipment for 60...