A company sells two models of a product, Model A and Model B. The sales of these

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A company sells two models of a product, Model A and Model B. The sales of these models are dependent of each other. The company wants to establish a pricing policy to maximize revenue from these models. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model:

N_A = 30 - 0.58P_A + 0.35P_B

N_B = 42 + 0.15P_A - 0.60P_B

a. Construct a mathematical model for the total revenue.

b. What is the predicted revenue if P_A = $30 and P_B = $30?

2. Develop a spreadsheet for calculating the total revenue

Posted Date: May 17, 2024 08:03 PM

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A company sells two models of a product, Model A and Model B. The sales of these

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