Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can sombody please help with this HW W1-1. Section 2.1 Exercise 42. Television Advertising As sales manager for Montevideo Productions, Inc., you are planning to

can sombody please help with this image text in transcribed
HW W1-1. Section 2.1 Exercise 42. Television Advertising As sales manager for Montevideo Productions, Inc., you are planning to review the price you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,500. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 15 contracts. This is down 5 contracts from the figure last year, when your company charged only $2,000. 36a. Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development. 36b. On average, Montevideo bills for 50 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour. 36c. The costs to Montevideo Productions are estimated as follows: Fixed Costs: $120,000 per month Variable Costs: $80,000 per contract Express Montevideo Productions' monthly cost, (1) as a function of the number 4 of contracts (ii) as a function of the hourly production charge p. 36d. Express Montevideo Productions' monthly profit as a function of the hourly development fee p and hence find the price it should charge to maximize the profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image_2

Step: 3

blur-text-image_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

Get Rich With Dividends

Authors: Marc Lichtenfeld

3rd Edition

1119985552, 978-1119985556

More Books

Students also viewed these Finance questions

Question

10. Describe the relationship between communication and power.

Answered: 1 week ago