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please help me understand this. i feel defeated. Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4
please help me understand this. i feel defeated.
Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4 There it was determined that the optimal level of advertising spending was $135,392 leading to a profit of $77,425 Now suppose that the component prices for the VRX2000 have been fluctuating The vatiable cost for producing the VRX2000 has now increased from $295 to $330 Due to the competive marketplace, VRX feels they cannot pass these costs on to the consumer, so the company plans to keep the selling price of the VRX2000 ot $400. Click here for the Excel Data.Elle Re-solve the optimization model for the VRX2000 considering the new variable cost a. What impact did the increased variable cost have (if any) on the best level of actvertising? Suppose instead that the varable cost for the VRX2000 decreases to $295. Re-solve the optimization model b. What impact did the decreased vartable cost have (if any) on the best level of advertising? Complete this question by entering your answers in the tabs below. What impact did the increased variable cost have (if any) on the best level of advertising? Note: Do not round intermediate calculations and round up the final answers to the next whole number. NeW Exercise Bank Content Qu. 01-08 Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 14. There it was determined that the optimal level of advertising spending was $135,392 leading to a profit of $77,425. Now suppose that the component prices for the VRX2000 have been fluctuating The variable cost for producing the VRX2000 has now increased from $295 to $330 Due to the competitive marketplace, VRX feels they cannot pass these costs on to the consumer, so the company plans to keep the selling price of the VRX2000 at $400 Click hete for the Excel Data File Re solve the optimization model for the VRX2000 considering the new variable cost. a. What impact did the increased variable cost have (if any) on the best level of advertising? Suppose instead that the variable cost for the VRX2000 decreases to $295. Re-solve the optimizotion model b. What impoct did the decreased variable cost have (if any) on the best level of advertising? Complete this question by enterino your answers in the tabs below. What impact did the decreased variable cost have (if any) on the best level of advertising? Note: Do not round intermediate calculations and round up the final answers to the noxt whole number. Ch1-8_Student Filev5 - Saved fx VRX2000 Optimiza Step by Step Solution
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