Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 15, 2023

A car wash reduced the price of a basic wash as a promotion and test of the market. With the price at $11 the

A car wash reduced the price of a basic wash as a promotion and test of the market. With the price at $11 the average monthly sales has been 30000. When the price dropped to $8, the average monthly sales rose to 35000. Assume that monthly sales is linearly related to the price. What car wash price would maximize revenue? $

Step by Step Solution

★★★★★

3.56 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

We can use the formula Revenue Price x Quantity To find the revenue for each price level and then de... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics Foundations of Business Analysis and Strategy

Authors: Christopher Thomas, S. Charles Maurice

11th edition

978-0078021718

More Books

Students also viewed these Mathematics questions

Question

★★★★★

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Answered: 1 week ago

Question

★★★★★

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Answered: 1 week ago

Question

★★★★★

The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfighter, reduced the price of its...

Answered: 1 week ago

Question

★★★★★

Which of these situations would require auditors to append an emphasis- of- matter paragraph about consistency to an otherwise unmodified opinion? a. Entity changed its estimated allowance for...

Answered: 1 week ago

Question

★★★★★

A report on the income transferal activities at the H. J. Heinz Company made the following statements. First, decentralized authority is a central principle of the companys operations. Second, the...

Answered: 1 week ago

Question

★★★★★

Which of the following macros is used to specify the calling and linkage convention of both Java native methods and their implementations. (a)JNIEXPORT (b) JNICALL (c)Both a)and b) (d) None of the...

Answered: 1 week ago

Question

★★★★★

What does it mean when an observation has a standardized residual ???????? = 6.51?

Answered: 1 week ago

Question

★★★★★

South Shore Construction builds permanent docks and seawalls along the southern shore of Long Island, New York. Although the firm has been in business only five years, revenue has increased from...

Answered: 1 week ago

Question

★★★★★

Save & ENTE Oslo Company produces large quantities of a standardized product. The following information is available for the first process in its production activities for May Units Beginning work in...

Answered: 1 week ago

Question

★★★★★

Electro-Phi Inc. (the "Company") is a utility provider that sells electricity to the public. The Company produces the electricity using various forms of power generation, including the burning of...

Answered: 1 week ago

Question

★★★★★

When using a Symbol you can specify the Entity Name or the Entity _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Group of answer choices Type Sequence Order Number

Answered: 1 week ago

Question

★★★★★

If you borrow $15000 for 4 years at an interest rate of 7.44% per annum, with the interest compounding quarterly, how much will you have to pay at the end of the period? $_______________ (two decimal...

Answered: 1 week ago

Question

★★★★★

Onyemah Corporation uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month of November appear below: Percent Complete with Respect to Units...

Answered: 1 week ago

Question

★★★★★

A 64-year male patient gets admitted to the ICU in the hospital with respi- ratory rate of 22, heart rate of 90, Glasgow Coma Scale score of 6 and blood pressure of 63, compute the mortality (i.e.,...

Answered: 1 week ago

Question

★★★★★

At steady state, a reversible heat pump cycle discharges energy at the rate to a hot reservoir at temperature TH, while receiving energy at the rate 2c from a cold reservoir at temperature Tc. (a) If...

Answered: 1 week ago

Question

★★★★★

Problem 8-24 (Algo) Cash Budget with Supporting Schedules (L08-2, LO8-4, LO8-8] Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the second quarter. The...

Answered: 1 week ago

Question

★★★★★

Par, Inc., es un pequeo fabricante de equipos y suministros de golf. El distribuidor de Par cree que existe un mercado tanto para una bolsa de golf de precio medio, denominada modelo estndar, como...

Answered: 1 week ago

Question

★★★★★

Organizations are increasing their use of personality tests to screen job applicants. What are some of the advantages and disadvantages of this approach? What can managers do to avoid some of the...

Answered: 1 week ago

Question

★★★★★

When McDonalds Corp. reduced the price of its Big Mac by 75 percent if customers also purchased French fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel...

Answered: 1 week ago

Question

★★★★★

When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his...

Answered: 1 week ago

Question

★★★★★

Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine? a. The price of comparable French wines decreases....

Answered: 1 week ago

Question

★★★★★

The lease on the premises occupied by the accounting firm of Heath and Company will soon expire. The current landlord is offering to renew the lease for seven years at $2100 per month. The developers...

Answered: 1 week ago

Question

★★★★★

Carmella purchased a refrigerator under a conditional sale contract that required 30 monthly payments of $60.26 with the first payment due on the purchase date. The interest rate on the outstanding...

Answered: 1 week ago

Question

★★★★★

If money can earn 5.25% compounded monthly, what is the value of an annuity consisting of annual payments of $2500 continuing for 16 years? The first payment will be received today.

Answered: 1 week ago

Previous Question Next Question