TaskTwo-Marketing Analytics

By analyzing previous historical data for electric bicycle sales companies, it can be seen that the sale volume haschanged according to its price in different periods. The values have been reported in the following table.Thiscompany isgoingto launch anewproductandthepriceneedsto bedecidedbased onthemarketanalysis.

Determinetheappropriatepriceforthenewlydeveloped electricbicyclewiththeaimofmaximizingthecompany'sprofit. Thedemand fora newproduct hasadirectrelationship to itsprice.

Table1-Demandsforanelectric bicyclebased onaprice levelaccordingtoprevious experiences

Price ()	Demand
1150	415
1185	407
1210	373
1235	342
1260	317
1285	302
1310	270
1335	255
1360	246
1385	240
1410	231
1435	222
1460	216
1485	214
1510	210
1540	208

The main objective of the company is to maximize profit from the new product. It is assumed that theunitproductionandsupplycostofeachelectricbicycle is 760,sotheprofit ofeachunitwillbe(thesaleprice

-unitproductioncost).

1. UseExceltodetermine theestimateddemand quadraticequationfunction anddescribewhythe quadraticformispreferred.
2. UseExcelSolvertofindtheoptimalprice whichmaximizesthecompany'sprofit.
3. Determinetheoptimaldemand.
4. Computetheoptimalprofit.
5. Interprettheresults.
6. IfthesupplycostofeachelectricBicycleis675andthen870 determinetheoptimal priceandinterprettheresultsappropriately.
7. Suppose that the supply cost is 870 and the company has decided to set the price less than 1300, then whatwillbe the optimalprice?Interpret the results