Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (D_s = demand for

image text in transcribed

Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (D_s = demand for the Sky Eagle, P_s is the selling price of the Sky Eagle, D_H is the demand for the Horizon and Ph is the selling price of the Horizon): D_s = 225 - 0.6P_S + 0.3P_H D_H = 270 + 0.1P_S - 0.58P_H The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models. Choose the correct answer below. P_SD_S + P_hD_h = P_h(270 - 0.1P_S - 0.58P_h) + P_s(225 - 0.6P_S + 0.3P_H) P_SD_S - P_hD_h = P_s(225 - 0.6P_S + 0.3P_h) - P_h(270 - 0.1P_S - 0.58P_H) P_sD_s + P_hD_h = P_s(225 - 0.6P_S + 0.3P_H) + P_h(270 + 0.1P_S - 0.58P_H) P_sD_s - P_hD_h = P_s(225 + 0.6P_S + 0.3P_H) - P_h(270 - 0.1P_S - 0.58P_H) Find the prices that maximize revenue. If required, round your answers to two decimal places. Optimal Solution: Selling price of the Sky Eagle (P_s): Selling price of the Horizon (p_H): Revenue

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

Step: 3

blur-text-image

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

The Internet Market Research Audit

Authors: Cambridge

1st Edition

1902433742, 978-1902433745

More Books

Students also viewed these Accounting questions