Question: A What If analysis: An electronics store sells two models of television. The sales of these two models, X and Y, are dependent, that is,

A "What If analysis: An electronics store sells two models of television. The sales of these two models, X and Y, are dependent, that is, if the price of one increases, the demand for the other increases. A study is made to find the relationship between the demand (D) and the price (P) in order to maximize the revenue from these products. The study resulted in the following two equations: Dx=480 - 0.5 Px+0.22 Py Dy - 601 + 0.18 PX -0.54 PY These equations can be implemented in Excel as following: TV X price TV Y price Demand X 100 100 -480 6.5*B1-0.22 B2 -601-0.18'B1- 0.54'B2 B1B3+B2B4 Demand Y Revenue -480- Demand X 0.5*B1+0.22"B2 -601+0.18 B1- Demand Y 0.54'B2 Revenue -B1B3+B2B4 Copy-and-paste, or type, the Excel information given above into cells A1:85 of an Excel spreadsheet Develop a two-way data table to estimate the optimal prices of each of the two products in order to maximize the total revenue. Vary the price of each product from 600 to 1000 in increments of 50. TV X price A TV Y price

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