Question: I have the solution to excercise 6. Only need the solution for when additional capacity can be added at a cost of $25 per bike.

I have the solution to excercise 6. Only need the solution for when additional capacity can be added at a cost of $25 per bike. NEED THE SOLUTION IN LINGO - PLEASE DO NOT USE EXCEL SOLVER.
Thank you!
Return to the bicycle manufacturer NatBike in Exercise 6. Assume that the plant has a capacity of 20,000 bicycles. If additional capacity can be added at a cost of $25 per bicycle, how should NatBike price to each of the two segments and how much capacity should it add? How are profits affected relative to Exercise 6? NatBike, a bicycle manufacturer, has identified two customer segments, one that prefers a customized bicycle and is willing to pay a higher price and another that is willing to take a standardized bicycle but is more price sensitive. Assume that the cost of manufacturing either bicycle is $200. Demand from the customized segment has a demand curve of d, = 20,000 - 10p, and demand from the price-sensitive standard segment is du = 20,000 - 10p2. What price should NatBike charge each segment if there is no capacity constraint? What price should NatBike charge each segment if the total available capacity is 20,000 bicycles? What is the total profit in each case

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!