Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Optimum Sales Target M E M O R A N D U M iRobot Roomba s9+ smart vacuum premium bundles are selling out! We are

Optimum Sales Target

image text in transcribed

M E M O R A N D U M iRobot Roomba s9+ smart vacuum premium bundles are selling out! We are continuously selling out of our iRobot Roomba s9+ smart vacuum premium bundles on a monthly basis. We think we have a hot market to tap into with the increasing demand from young professionals with pets that are looking for convenience in the Wi-Fi connected feature and automatic dirt disposal. So, I would like you to review our current sales target for untapped profit potential. In the past we would sell about 40 iRobot Roomba s9+ smart vacuum premium bundles per month in each region and so that is what we have been traditionally stocking in our regional warehouses. We think that we can move more units now to increase our profits and I am inclined to shoot for 50 units per month. I would like you to review our current sales volume and give any recommendations for improving our profit potential. Our sales department has indicated that our monthly revenues of this product line are R(Q) = 3,000Q 20Q2 which they derived from our estimated monthly inverse demand curve of P(Q) = 3,000 20Q. Furthermore, our accounting team has constructed our monthly costs associated to this product line to be C(Q) = 50,000 + 5Q2. Let me know your recommendation for the optimal monthly sales target to maximize our profits from the iRobot Roomba s9+ smart vacuum premium bundles

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

Students also viewed these Finance questions