Question: Develop a substitutable products spreadsheet model for the problem described below. The Camera Shop is selling two popular models of digital cameras. The sales of
Develop a substitutable products spreadsheet model for the problem described below.
The Camera Shop is selling two popular models of digital cameras. The sales of these two cameras are not independent: if the price of one increases, the sales of the other increases. The store wishes to establish a pricing policy to maximize sales revenues from these two products. A study of price and sales shows the following relationships between the quantity sold and price :
where and represent quantity of model and model sold, and represent price of model and model
On the first sheet that you should rename to REVENUES develop formulas for quantities sold and revenue when the initial price of model camera is set to $ and the initial price of model is $ Develop then a twoway data table to recalculate the sales revenue when price of model varies from to in increments of $ while price of model varies from $ to $ in increments of $
On the twoway data table created through the Data, Whatif Excel options use conditional formatting and the max builtin function to highlight the best pricing of the two cameras.
On the sheet named Solversolution use Excel's Solver to find the "optimal pricing" of the two cameras; generate also the Solver's Answer Report. Each sheet should display your name, course and section number.
Would you recommend using the twoway data table or Solver to find the optimal pricing of the two cameras? Justify briefly your recommendation.
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