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5. Suppose the function Q(p) = 4500e-0.24p gives the number of items sold when the company prices the items at p dollars per item. Find a formula for the total revenue earned, R(p), when charging p dollars per item. Then use Excel to identify the price they should charge in order to maximize revenue. Also identify the revenue they would be earning at the price, as well as the number of items they would be selling. 8. The function P(q) = 85,000e-0.489 gives the price per item when the company produces and sells q items. When the company produces the items, it costs them $850 in initial fixed costs, and then an additional $1.15 per item produced. Assume that they sell exactly the same number of items that they produce. a) Find a formula for the revenue they would earn, R(q) if they produced and sold q items. b) Find a formula for the total cost they would incur, C(q) if they produced and sold q items. c) Find a formula for the total profit they would make, F(q) if they produced and sold q items. Remember that we are assuming that they produce exactly the same number of items that they sell. d) Use Excel to find the number of items they would produce and sell in order to have the maximum revenue, and also identify what that maximum revenue would be, and the price they would charge per item. e) Use Excel to find the number of items they would produce and sell in order to have the maximum profit, and also identify what that maximum profit would be, and the price they would charge per item. 5. Suppose the function Q(p) = 4500e-0.24p gives the number of items sold when the company prices the items at p dollars per item. Find a formula for the total revenue earned, R(p), when charging p dollars per item. Then use Excel to identify the price they should charge in order to maximize revenue. Also identify the revenue they would be earning at the price, as well as the number of items they would be selling. 8. The function P(q) = 85,000e-0.489 gives the price per item when the company produces and sells q items. When the company produces the items, it costs them $850 in initial fixed costs, and then an additional $1.15 per item produced. Assume that they sell exactly the same number of items that they produce. a) Find a formula for the revenue they would earn, R(q) if they produced and sold q items. b) Find a formula for the total cost they would incur, C(q) if they produced and sold q items. c) Find a formula for the total profit they would make, F(q) if they produced and sold q items. Remember that we are assuming that they produce exactly the same number of items that they sell. d) Use Excel to find the number of items they would produce and sell in order to have the maximum revenue, and also identify what that maximum revenue would be, and the price they would charge per item. e) Use Excel to find the number of items they would produce and sell in order to have the maximum profit, and also identify what that maximum profit would be, and the price they would charge per item.

Answer rating: 100% (QA)

Number of items Sold at price P QLe 4500 e 024P revenue Number f iteme S... View the full answer