Calculus for Business Project Information: Your company's marketing department has completed a study in a number of test markets for your product around the country. Your marketing data file contains the results of this study. Scenario: Your data indicates the approximate size of the potential national market for your product. To bring this product to the Vice President of the company, they have requested to supply the following things: What is the price of the product that will maximize the profit? Will the market support 2,000,000 units to be sold? Will the market support a profit of at least $15,000,000? What is the range of units sold needed to be sold to reach $10,000,000? What is the volatility of the price you have set? . . . 17 7188 4. B D TEAM MARKETING D.41.4: Assignment MA144-K Team Product Description: Demand Information Potential national market: 100.000.000 3 4 3 Test Markets Projected Yearly Market Number Market Size Price Sales 1 355,500 $565.95 1,319 2 2,326,800 $589.95 7,851 3 4,497,300 $612.95 15,255 4 2,426,800 $636.95 7.188 5 2,101,900 $660 95 5,974 6 4.761,000 $683.95 13.246 7 3,099.900 $707.95 8.030 8 4,435,100 $730.95 9.220 Use a second degree polynomial demand function 8 3 1 3 + Cost Information Fixed Cost For The Year $60,000,000 Variable Costs Quantity First 200,000 Next: 100.000 Further Cost per unit $427 $342 $274 Possible Additional Questions to consider 6. What profit could be expected if your product had the following price? 7 What would be the effect on profit If demand changed by the following? 8. How would the change in demand effect the optimal price of the product? 9. What would be the effect on profit if marginal costs changed by the following? $649.99 59 -390 Assignment Calculus for Business Project Information: Your company's marketing department has completed a study in a number of test markets for your product around the country. Your marketing data file contains the results of this study. Scenario: Your data indicates the approximate size of the potential national market for your product. To bring this product to the Vice President of the company, they have requested to supply the following things: What is the price of the product that will maximize the profit? Will the market support 2,000,000 units to be sold? Will the market support a profit of at least $15,000,000? What is the range of units sold needed to be sold to reach $10,000,000? What is the volatility of the price you have set? . . . 17 7188 4. B D TEAM MARKETING D.41.4: Assignment MA144-K Team Product Description: Demand Information Potential national market: 100.000.000 3 4 3 Test Markets Projected Yearly Market Number Market Size Price Sales 1 355,500 $565.95 1,319 2 2,326,800 $589.95 7,851 3 4,497,300 $612.95 15,255 4 2,426,800 $636.95 7.188 5 2,101,900 $660 95 5,974 6 4.761,000 $683.95 13.246 7 3,099.900 $707.95 8.030 8 4,435,100 $730.95 9.220 Use a second degree polynomial demand function 8 3 1 3 + Cost Information Fixed Cost For The Year $60,000,000 Variable Costs Quantity First 200,000 Next: 100.000 Further Cost per unit $427 $342 $274 Possible Additional Questions to consider 6. What profit could be expected if your product had the following price? 7 What would be the effect on profit If demand changed by the following? 8. How would the change in demand effect the optimal price of the product? 9. What would be the effect on profit if marginal costs changed by the following? $649.99 59 -390 Assignment
