Question
Joes sodas landed a great account. They have exclusive rights to sell at Sienas Summer Bash Party. The company predicts the following models where (x)
Joes sodas landed a great account. They have exclusive rights to sell at Sienas Summer Bash Party. The company predicts the following models where (x) is the number of units: The daily demand function is : p = 2 0.0004x The daily total cost function is : C(x) = 800 + 0.2x + 0.0001x2 a) If we set a price point of $1.70 per soda how many should we sell b) If we set a price point of $1.50 per soda how many should we sell c) What is our total profit function d) How many units do we need to sell to maximize profit e) What is our maximum profit f) What is our selling price to acheive the maximum profit Assume instead of using the above daily demand function we decide to set a fixed selling price of $1.25 per soda. g) What is our adjusted total profit function h) How many units now do we need to sell to maximize profit i) What is our maximum profit j) So which demand function makes the most sense here and explain your answer
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