question 11

e Of course, ned constraints developed to state a man Des Moines retail store at minimum cost. in an increased demand. Let d = annual demand for a product in units P = price per unit Assume that a firm accepts the following price-demand relationship as being realistic d = 800 - 10p where p must be between $20 and $70. a. How many units can the firm sell at the $20 per-unit price? At the $70 per-unit price? b. What happens to annual units demanded for the product if the firm increases the per- unit price from $26 to $27? From $42 to $43? From $68 to $69? What is the sug. gested relationship between the per-unit price and annual demand for the product in units? c. Show the mathematical model for the total revenue (TR), which is the annual demand multiplied by the unit price. d. Based on other considerations, the firm's management will only consider price alterna- tives of $30, $40, and $50. Use your model from part (b) to determine the price alterna- tive that will maximize the total revenue. e. What are the expected annual demand and the total revenue corresponding to your 11. For most products, higher prices result in a decreased demand, whereas lower prices result Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at the 11. For most products, higher prices result in a decreased demand, whereas lower prices result d. units can be shipped situation e. Des Moines retail store at minimum cost. in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being realistic: d = 800 - 10p where p must be between $20 and $70. a. How many units can the firm sell at the $20 per-unit price? At the $70 per-unit price? b. What happens to annual units demanded for the product if the firm increases the per- unit price from $26 to $27? From $42 to $43? From $68 to $69? What is the sug- gested relationship between the per-unit price and annual demand for the product in units? c. Show the mathematical model for the total revenue (TR), which is the annual demand multiplied by the unit price. d. Based on other considerations, the firm's management will only consider price altema- tives of $30, $40, and $50. Use your model from part (b) to determine the price alterma- tive that will maximize the total revenue. e. What are the expected annual demand and the total revenue corresponding to your recommended price