Problem 8-03 (Algorithmic)

Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows:DS= demand for the Sky Eagle,PSis the selling price of the Sky Eagle,DHis the demand for the Horizon, andPHis the selling price of the Horizon.

DS= 215 - 0.50PS+ 0.30PH

DH= 257 + 0.15PS- 0.62PH

The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank.

The revenue function is:

MaxPS2+PS+PSPH+PH+PH2

Find optimal solution and the revenue maximizing prices. If required, round your answers to the nearest cent.

PS= $

PH= $

Optimal revenue = $