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The Tesla Model Y is an electric car produced and sold by Tesla Inc. The marketing division (i.e., the downstream division) estimates that the market
The Tesla Model Y is an electric car produced and sold by Tesla Inc. The marketing division (i.e., the downstream division) estimates that the market demand function of Model Y is Q=80-0.5P, where Q is the quantity of Model Y demanded, and P is the price per unit of Model Y. The total cost of assembling and selling Model Y to customers is TCD=2Q+200. Each Model Y requires 1 structural battery pack. The structural battery pack is produced by the manufacturing division (i.e., the upstream division). The total cost function for producing a structural battery pack is TCII=0.500II2+80II+50, where Qu is the quantity of battery packs produced per period. There is no external market. All costs and price units are in thousands (don't put "000" in the functions). Also, all cost and demand functions are per period. 4.3 Determine the optimal transfer price (PU). - PU= 4.4 Use the profit functions of your answer in (4.1), determine the profits earned by the downstream division ( D) the upstream division (U), and total profits (). - D= - U= - = The Tesla Model Y is an electric car produced and sold by Tesla Inc. The marketing division (i.e., the downstream division) estimates that the market demand function of Model Y is Q=80-0.5P, where Q is the quantity of Model Y demanded, and P is the price per unit of Model Y. The total cost of assembling and selling Model Y to customers is TCD=2Q+200. Each Model Y requires 1 structural battery pack. The structural battery pack is produced by the manufacturing division (i.e., the upstream division). The total cost function for producing a structural battery pack is TCII=0.500II2+80II+50, where Qu is the quantity of battery packs produced per period. There is no external market. All costs and price units are in thousands (don't put "000" in the functions). Also, all cost and demand functions are per period. 4.3 Determine the optimal transfer price (PU). - PU= 4.4 Use the profit functions of your answer in (4.1), determine the profits earned by the downstream division ( D) the upstream division (U), and total profits (). - D= - U= - =
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