Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A What-If analysis: An electronics store sells two models of television. The sales of these two models, X and Y, are dependent, that is,
A "What-If" analysis: An electronics store sells two 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 these products. The study resulted in the following two equations: Dx 476 -0.54 Px + 0.22 Py Dy 601 +0.12 PX -0.54 PY These equations can be implemented in Excel as following: TV X price 100 100 TVY price =476- Demand X 0.54 B1+0.22*B2 =601+0.12*B1- Demand Y Revenue 0.54*B2 =B1*B3+B2*B4 Copy-and-paste, or type, the Excel information given above into cells A1:B5 of an Excel spreadsheet. Develop a two-way data table to estimate the optimal prices of each of the two products in order to maximize the total revenue. Vary the price of each product from 600 to 1000 in increments of 50. TV X price A TV Y price A
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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