Business, 18.02.2020 03:29 deemy0292

A television station is considering the sale of promotional DVDs. I can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1,200.00 plus $2.00 for each DVDs; supplier B has no set-up fee and will charge $4.00 per DVD. The station estimates its demand for the DVDs to be given by Q=1,600-20P, where P is the price in dollars and Q is the number of DVDs. (price equation is P=8-Q/200.)

a. Suppose the station plans to give away the video. How many DVDs should it order? From which supplier?
b. Suppose instead that the station seeks to maximize its profit from sales of the DVDs. What price should it charge? How many DVDs should it order from which supplier? (hint: Solve two separate problems, one with supplier A and one with supplier B, and then compare profits. In each case, apply the MR=MC rule.)

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:20

25. kerry company plans to sell 200,000 units of finished product in july and anticipates a growth rate in sales of 5% per month. the desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. there are 150,000 finished units in inventory on june 30. kerry company's production requirement in units of finished product for the three-month period ending september 30 is: a. 712,025 units b. 630,500 units c. 664,000 units d. 665,720 units

Answers: 3

Answer

Business, 21.06.2019 19:50

Which of the following best describes the economic effect that results when the government increases interest rates and restricts the lending of money? a. borrowing money becomes more expensive and there is less investment in production. b. the economy grows as investments result in larger profits. c. government spending drives up prices because of greater competition for goods and services. d. consumers save more money and spend less buying goods and services.

Answers: 2

Answer

Business, 22.06.2019 18:00

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less

Answers: 1

Answer

Business, 22.06.2019 19:20

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. during 2003, an auction house sold a sculpture at auction for a price of $10,211,500. unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,177,500. what was his annual rate of return on this sculpture? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answer as

Answers: 2

Answer

You know the right answer?

A television station is considering the sale of promotional DVDs. I can have the DVDs produced by on...

Questions