Question
The Weibracht Corporation designs and manufactures custom beer steins for some of the numerous brew pubs in western North Carolina. Each stein costs Weibracht $8
The Weibracht Corporation designs and manufactures custom beer steins for some of the numerous brew pubs in western North Carolina. Each stein costs Weibracht $8 to produce. The brew pubs purchase the steins from Weibracht for resale to their customers and require a 51% margin. Weibrachts marketing director has conducted a regression analysis using historical data, resulting in the following regression line:
q = -12 * p + 326, where q = slope * retail price + MWB
What is the profit maximizing price that Weibracht should charge the brew pubs for these custom steins?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started