Problem $14-05$ Algo $($A Production Application: Par, Inc. Revisited$)$

Hint$($s$).$ Check My Work

Jim's Camera shop sells two high$-$end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows $(D_s=$ demand for the Sky Eagle, $P_s$ is the selling price of the Sky Eagle, $D_H$ is the demand for the Horizon and $P_H$ is the selling price of the Horizon$)$:

$D_S=220-0\mathrm{.}5P_S+0\mathrm{.}25P_H$

$D_H=275+0\mathrm{.}2P_S=0\mathrm{.}58P_H$

The store wishes to determine the selling price that maximizes revenue for these two products. Select the revenue function for these tro models. Choose the correct answer below.

$($i$)P_s{D}_S+P_H{D}_H=P_H(275-0\mathrm{.}2P_S-0\mathrm{.}58P_H)+P_s(220-0\mathrm{.}5P_S+0\mathrm{.}25P_H)$

$($ii$)P_S{D}_S-P_H{D}_H=P_S(220-0\mathrm{.}5P_S+0\mathrm{.}25P_H)-P_H(275-0\mathrm{.}2P_S-0\mathrm{.}58P_H)$

$($iii$)P_S{D}_S+P_H{D}_H=P_S(220-0\mathrm{.}5P_S+0\mathrm{.}25P_H)+P_H(275+0\mathrm{.}2P_S-0\mathrm{.}58P_H)$

$($iv$)P_s{D}_s-P_H{D}_H=P_s(220+0\mathrm{.}5P_s+0\mathrm{.}25P_H)-P_H(275-0\mathrm{.}2P_s-0\mathrm{.}58P_H)$

Optior

Find the prices that maximize revenue.

Do not round intermediate calculations. If required, round your answers to two decimal places.

Optimal Solution:

Selling price of the Sky Eagle $(P_s)$: s

Selling price of the Horizon $(P_{-1})$:$

Total Revenue: s