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1 New Exercise Bank Content Qu . 0 1 - 0 8 1 4 . 2 8 poimts Skipped ebook Pilint pelferences Reconsider the example

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New Exercise Bank Content Qu.01-08
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Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4. There it was determined that the optimal level of advertising spending was $135,392 leading to a profit of $77,425. Now suppose that the selling price, variable cost and/or fixed cost can fluctuate as stated below.
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a. Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit?
b. Re-solve the optimization model for the VRX2000 using a variable cost of $280, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit?
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Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit?
intermediate calculations. Round your answers to the nearest whole number
\table[[Advertising budget]]
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\table[[A,A B,C,E],[1 V,/RX2000 Optimiz,zation Mode,],[2,+,,],[3,Parameters:,,],[4,Unit Variable Cost,$320,],[5,Unit Revenue,$400,],[6,Fixed Cost,( $100000,],[7,,$100,000,],[8,,,],[8,Decision Variable:,,],[9,Advertising Budget,,],[10,,,],[11,Prediction Formula: S,Sales ~~avx+b,],[12,a,7.01,],[13,b,400,],[14,,,],[15,Expected Units Sold,,],[16,,,],[17,,,],[18,Total Revenue,,],[18,Total Variable Cost,,],[19,Fixed Cost,$100,000,],[20,Advertising Cost,,],[21,,,],[22,Total Profit,,],[23,,,],[24,,,],[25,,,],[26,,,],[27,,,],[28,,,],[29,,,]]
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