Complete the Price, Advertising, and Profitability chart.

a$.$ ?Notice that the series for $$25,000,000$ ?is already on the chart.

b$.$ ?Add the series for advertising budgets $$50,000,000$ ?and $$75,000,000$ ?from your data table to the chart.

Consider the one$-$way data table. What is the optimal supplier contract?

$$0$

$$10$ ?Million

$$20$ ?Million

$$30$ ?Million

$$40$ ?Million

$$50$ ?Million

$$60$ ?Million

$$70$ ?Million

$$80$ ?Million

$$90$ ?Million

$$100$ ?Million

$(10)$ ?Consider the two$-$way data table. How much should $?$ ?the company spend on advertising to maximize profit?

$$25$ ?Million

$$50$ ?Million

$$75$ ?Million

Consider the two$-$way data table. Where should the company set the price to maximize profit?

$$210$

$$230$

$$250$

$$270$

$$290$

$$310$

$$330$

$$350$

$$370$

$35$

$36$

$37$

$38$

$39$

$40$

$4$

$42$

$4$

$44$

$45$

$46$

$47$

Price

$48$

$49$

$50$

$51$

$52$

$53$

$54$

$55$

$56$

$57$

$58$

Transcribed Image Text:

33333 35 36 37 $197,786,074 $200 38 39 $210 $220 $7,099,034 $29,942,554 Advertising Budget $25,000,000 $50,000,000 -$18,244,486 $38,511,027 $89,198,068 $75,000,000 $13,511,027 $140,000,000 $64,198,068 $120,000,000 $134,885,108 $109,885,108 $100,000,000 40 $230 $50,286,074 $175,572,149 $150,572,149 41 $240 $68,129,595 $211,259,190 $186,259,190 $80,000,000 42 $250 $83,473,115 $241,946,230 $216,946,230 $60,000,000 43 $260 $96,316,635 $267,633,271 $242,633,271 $40,000,000 44 $270 $106,660,156 $288,320,311 $263,320,311 45 $280 46 $290 47 Price $300 $114,503,676 $304,007,352 $119,847,196 $122,690,716 $320,381,433 $279,007,352 $20,000,000 $314,694,392 $289,694,392 $295,381,433 -$20,000,000 48 $310 $123,034,237 $321,068,473 $296,068,473 49 $320 $120,877,757 $316,755,514 $291,755,514 -$40,000,000 50 $330 $116,221,277 $307,442,554 $282,442,554 51 $340 $109,064,797 $293,129,595 $268,129,595 52 $350 $99,408,318 $273,816,635 $248,816,635 53 $360 $87,251,838 $249,503,676 $224,503,676 54 $370 $72,595,358 $220,190,716 $195,190,716 55 $380 $55,438,878 $185,877,757 $160,877,757 56 $390 $35,782,399 $146,564,797 $121,564,797 57 $400 $13,625,919 $102,251,838 $77,251,838 58 Price, Advertising, and Profitability $0 $200 $220 $240 $260 $280 $300 $320 $340 $360 $380 $400 -$25,000,000 C 33333 35 36 37 $197,786,074 $200 38 39 $210 $220 $7,099,034 $29,942,554 Advertising Budget $25,000,000 $50,000,000 -$18,244,486 $38,511,027 $89,198,068 $75,000,000 $13,511,027 $140,000,000 $64,198,068 $120,000,000 $134,885,108 $109,885,108 $100,000,000 40 $230 $50,286,074 $175,572,149 $150,572,149 41 $240 $68,129,595 $211,259,190 $186,259,190 $80,000,000 42 $250 $83,473,115 $241,946,230 $216,946,230 $60,000,000 43 $260 $96,316,635 $267,633,271 $242,633,271 $40,000,000 44 $270 $106,660,156 $288,320,311 $263,320,311 45 $280 46 $290 47 Price $300 $114,503,676 $304,007,352 $119,847,196 $122,690,716 $320,381,433 $279,007,352 $20,000,000 $314,694,392 $289,694,392 $295,381,433 -$20,000,000 48 $310 $123,034,237 $321,068,473 $296,068,473 49 $320 $120,877,757 $316,755,514 $291,755,514 -$40,000,000 50 $330 $116,221,277 $307,442,554 $282,442,554 51 $340 $109,064,797 $293,129,595 $268,129,595 52 $350 $99,408,318 $273,816,635 $248,816,635 53 $360 $87,251,838 $249,503,676 $224,503,676 54 $370 $72,595,358 $220,190,716 $195,190,716 55 $380 $55,438,878 $185,877,757 $160,877,757 56 $390 $35,782,399 $146,564,797 $121,564,797 57 $400 $13,625,919 $102,251,838 $77,251,838 58 Price, Advertising, and Profitability $0 $200 $220 $240 $260 $280 $300 $320 $340 $360 $380 $400 -$25,000,000 C