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, if

A "What-If" analysis: An electronics store sells

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 = 495 - 0.58 Px + 0.23 Py Dy= 601 + 0.1 PX-0.54 PY These equations can be implemented in Excel as following: TVX price 100 TVY price 100 =495- Demand X 0.58*B1+0.23*B2 =601+0.1*B1- Demand Y 10.54*B2 Revenue =B1*B3+B2*B4 Copy-and-paste, or type, the Excel information given above into cells A1:35 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. TVX price A TV Y price AJ

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Fredrick Wilson Company determined that one of its finite- life intangible assets is impaired. The assets net carrying value on the date of the impairment is $ 905,000. Fredrick Wilson does not use a...

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...

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...

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...

An electronics store sells two models of television. The sales of these two models, X and Y (X price = $375 and Y price = $475) , are dependent, that is, if the price of one increases, the demand for...

an electronics store sells two modes of television. the sales of these two models, X an Y (X price is $300 and Y price is $400$ are dependant, that is, if the pice of one increases, the demand for...

A "What-if" analysis: A department store sells two popular models of wireless headphones, model A and model B. The sales of these products are not independent of each other. Economists call these...

Question 9 options: A "What-If" analysis: A department store sells two popular models of wireless headphones, model A and model B. The sales of these products are not independent of each other....

A "What-If" analysis: A department store sells two popular models of wireless headphones, model A and model B. The sales of these products are not independent of each other. Economists call these...

question posted in half so images are clear. 11.2.17 An electronics store sells two popular models of wireless headphones, model A and model B. The sales of these products are not independent of each...

Make a Facebook cause (www.facebook.com/causes). Invite several friends to join. Using paper and pencil or diagramming software, make a BPMN diagram of the three or four key activities in this...

Brokers and mutual funds do the same thing: invest your money for you. Is that statement true or false? Explain. What kind of financial institution is a mutual fund? What is its distinguishing...

The three types of losses generally covered by marine insurance policies include all but which of the following? Group of answer choices General average losses Total losses of all or part of a...

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...