The company is considering five new beers, but to maximize profits (sales minus advertising expenses and...

  

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The company is considering five new beers, but to maximize profits (sales minus advertising expenses and investment) only one of them will be introduced to the market next year. The initial investment in equipment to develop any of those beers would be $100,000. The proposed beers vary on the content of hops and malt. Samples of the new beers have been already rated in terms of bitterness. Since the beers would target different segments of the population, the advertising expenditures will also vary. The corresponding data for these beers can be found on the "Proposed Beers" tab. Which of the five beers do you recommend producing next year? Explain in writing the reason for your choice. Proposed Beer A BU C DE E Hops (ounces per keg) 11 14 15 9 10 Malt Planned (pounds Advertisin Bitterness per keg) ($) Scale 8 $140,000 4 $150,000 4 $180,000 6 $130,000 7 $160,000 7 00 00 00 7 8 8 9 The company is considering five new beers, but to maximize profits (sales minus advertising expenses and investment) only one of them will be introduced to the market next year. The initial investment in equipment to develop any of those beers would be $100,000. The proposed beers vary on the content of hops and malt. Samples of the new beers have been already rated in terms of bitterness. Since the beers would target different segments of the population, the advertising expenditures will also vary. The corresponding data for these beers can be found on the "Proposed Beers" tab. Which of the five beers do you recommend producing next year? Explain in writing the reason for your choice. Proposed Beer A BU C DE E Hops (ounces per keg) 11 14 15 9 10 Malt Planned (pounds Advertisin Bitterness per keg) ($) Scale 8 $140,000 4 $150,000 4 $180,000 6 $130,000 7 $160,000 7 00 00 00 7 8 8 9

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As per the data available Comparing A and B 1Minimum advertising expense is incurred in A ie 140000 ... View the full answer