Staples copy center sells 1 hour passes for unlimited copying for $25. Currently, they service 70...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Staples copy center sells 1 hour passes for unlimited copying for $25. Currently, they service 70 customers per day. They are looking to increase their prices to maximize their revenue. For every $1 they increase the cost of the pass, they anticipate losing 2 customers. In this task you will answer 7 questions about the price options and recommend what price staples should charge for the passes in order to maximize revenue (income generated from the sale of goods). 1. If Staples charges $26 for the 1 hour pass, how many customers will they service? 2. If Staples charges $26 for the 1 hour pass, how much revenue can they expect? 3. Complete the table based on the price of the 1 hour pass and the number of customers serviced. Number of $1 Price Price of 1 hour Pass Expected Number of Expected Revenue Increases (x) ($) Customers 70 0 25 1 2 5 10 66 (S) 1,750 4. Create an expression that represents the price of the copy center passes. Let x = the number of $1 price increases. 5. Create an expression that represents the number of expected customers. 6. Combine your two expressions to create a quadratic equation in standard form that represents the total revenue staples received in a day. 7. Based on your findings, what price should Staples charge for one hour of unlimited printing in order to maximize revenue. Explain in 2-3 sentences. Staples copy center sells 1 hour passes for unlimited copying for $25. Currently, they service 70 customers per day. They are looking to increase their prices to maximize their revenue. For every $1 they increase the cost of the pass, they anticipate losing 2 customers. In this task you will answer 7 questions about the price options and recommend what price staples should charge for the passes in order to maximize revenue (income generated from the sale of goods). 1. If Staples charges $26 for the 1 hour pass, how many customers will they service? 2. If Staples charges $26 for the 1 hour pass, how much revenue can they expect? 3. Complete the table based on the price of the 1 hour pass and the number of customers serviced. Number of $1 Price Price of 1 hour Pass Expected Number of Expected Revenue Increases (x) ($) Customers 70 0 25 1 2 5 10 66 (S) 1,750 4. Create an expression that represents the price of the copy center passes. Let x = the number of $1 price increases. 5. Create an expression that represents the number of expected customers. 6. Combine your two expressions to create a quadratic equation in standard form that represents the total revenue staples received in a day. 7. Based on your findings, what price should Staples charge for one hour of unlimited printing in order to maximize revenue. Explain in 2-3 sentences.
Expert Answer:
Answer rating: 100% (QA)
Answer Lets address each question step by step 1 To find out how many customers Staples will service if they charge 26 for the 1hour pass well need to ... View the full answer
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date:
Students also viewed these finance questions
-
Before preparing financial statements for the current year, the chief accountant for Sunland Company discovered the following errors Stock $1,840,000. in the accounts 1. 3 The declaration and payment...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Oil flows through the 100-mm-diameter pipe with a velocity of 5 m/s. If the pressure in the pipe at A and B is 80 kpa, determine the x and y components of force the flow exerts on the elbow. The flow...
-
Two department heads are engaging in an argument. The head of department A argues that department A makes a greater contribution to profits, having produced a higher operating income for three years....
-
What do you think is the reason for so many city vehicles speeding and running red lights? Is it due to driver personality or characteristics of the work environment? Use learning theory to explain...
-
Water at \(35^{\circ} \mathrm{C}\) is pumped through a horizontal, \(200-\mathrm{m}\)-long, \(30-\mathrm{mm}\)-diameter tube at \(0.25 \mathrm{~kg} / \mathrm{s}\). Over time, a 2-mm-thick layer of...
-
The base plate of an iron has a thickness of L = 7 mm and is made from an aluminum alloy (p = 2800 kg/m 3 c = 900 J/kg K, k = 180 W/m K, = 0.80). An electric resistance heater is attached to the...
-
Explain the role of safety instrumented systems (SIS) in PSM, focusing on how safety integrity levels (SIL) are determined and the impact of these systems on overall process safety.
-
John and Ellen Brire are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. Brite-On had the following assets...
-
With a global mindset by which we try to see things through the eyes of others and add their knowledge to our personal repertories (Chen & Starosta, 2000, p. 1), we can perhaps take three steps...
-
Summarize your conclusions about how amenities affect incomes and real-estate prices. Although some conclusions are ambiguous, it is possible to offer a clear-cut statement when the effect of...
-
What techniques can be used to ensure clarity and avoid ambiguity in memo writing? Discuss the importance of clear directives and the potential consequences of misinterpretation.
-
What are the key mechanisms by which mitochondria maintain the mitochondrial membrane potential, and how does the disruption of this potential affect ATP synthesis and cellular energetics ?
-
Mary Ann purchased a second-hand Subaru from Unfriendly Motors Ltd., a used car dealership, under a conditional sale agreement. Mary Ann used the car for several months and made her payments...
-
What makes a good leader? what makes a bad leader?, what leadership styles be?, how does leadership affects a workplace? how does it affects communication? What is the intended outcome of the...
-
Convert the following expression into cartesian coordinates. Show all steps. e = /4,0
-
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
-
What are the major elements of financial statement analysis?
-
What are debits and credits?
-
Why are variances calculated?
-
Describe the process of going public using an IPO, starting with underwriter selection and proceeding through the various stages that lead to determination of an issue price.
-
Identify at least four methods by which investors and/or the entrepreneur in a new venture can harvest their investment in a new venture. Describe the costs and benefits of each, and provide a...
-
From the perspective of the entrepreneur, what are the pros and cons of an IPO as opposed to private sale of the venture to a public company in exchange for stock or cash?
Study smarter with the SolutionInn App