Question

Texts: Quarterly rent: $1,500 Annual salaries: $14,000 Monthly Advertising: $1,709 Materials (per unit): $20 Labor (10 units): $50 Monthly quantity: 20 watches Based on the data indicated, calculate the sale price of each watch if the desired margin percentage is equal to 31%. Question 2 10 points If each watch sold for a price of $170, what would be the annual equilibrium quantity? (If you did not indicate it in the previous exercise, do not forget to include your file number) Question 3 10 points If the number of watches sold annually were 180 units, what would the new selling price be with a 25% sales margin? (If you did not indicate it in the previous exercises, do not forget to include your file number) Question 4 10 points If P-Watch sold 500 watches per year, would it be a profit or loss business? Justify your answer. Question 5 10 points Considering the prices obtained for P-Watch watches, do you consider that it is a penetration or skimming strategy? Conceptually justify your answer.

          Texts: 
Quarterly rent: $1,500
Annual salaries: $14,000
Monthly Advertising: $1,709
Materials (per unit): $20
Labor (10 units): $50
Monthly quantity: 20 watches

Based on the data indicated, calculate the sale price of each watch if the desired margin percentage is equal to 31%.

Question 2
10 points
If each watch sold for a price of $170, what would be the annual equilibrium quantity?
(If you did not indicate it in the previous exercise, do not forget to include your file number)

Question 3
10 points
If the number of watches sold annually were 180 units, what would the new selling price be with a 25% sales margin?
(If you did not indicate it in the previous exercises, do not forget to include your file number)

Question 4
10 points
If P-Watch sold 500 watches per year, would it be a profit or loss business? Justify your answer.

Question 5
10 points
Considering the prices obtained for P-Watch watches, do you consider that it is a penetration or skimming strategy? Conceptually justify your answer.

Show more…

Added by Louis G.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Eduard Sanchez

04/13/2023

Step 1

Cost of materials per unit: $20 Labor cost per unit (10 units): $50 Total cost per unit: $20 + $50 = $70 Show more…

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Texts: Quarterly rent: $1,500 Annual salaries: $14,000 Monthly Advertising: $1,709 Materials (per unit): $20 Labor (10 units): $50 Monthly quantity: 20 watches Based on the data indicated, calculate the sale price of each watch if the desired margin percentage is equal to 31%. Question 2 10 points If each watch sold for a price of $170, what would be the annual equilibrium quantity? (If you did not indicate it in the previous exercise, do not forget to include your file number) Question 3 10 points If the number of watches sold annually were 180 units, what would the new selling price be with a 25% sales margin? (If you did not indicate it in the previous exercises, do not forget to include your file number) Question 4 10 points If P-Watch sold 500 watches per year, would it be a profit or loss business? Justify your answer. Question 5 10 points Considering the prices obtained for P-Watch watches, do you consider that it is a penetration or skimming strategy? Conceptually justify your answer.

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Transcript

00:01 Hi there, so for this problem we're told that a company manufactures and sells x forms per week.

00:08 Now we're given that the price for this is 500 minus 0 .5 times x and the cost function for this is 15 000 this plus 140 times x.

00:26 So the question for part a of this problem is about what price should the company charge for the forms and how many firms should produce to maximize the weekly revenue.

00:37 So first of all remember that the revenue is just the pair between x and the price so that will be just simply 500 times x minus 0 .5 times x squared.

00:48 Now in order to minimize this, well to maximize the revenue we are going to derivate this with respect to x and set that equal to zero.

00:57 So that will be 500 minus x and then we set this equal to zero.

01:04 Then solving for x that will be 500.

01:06 So this is the amount of funds that we need to sell.

01:10 So the company should produce 500 funds, each will cost, so we now substitute that in here, so the price for each fund is 500 minus 0 .5 times this value.

01:26 So this will give us 250.

01:29 So that is the price for each fund and finally with this we can obtain the maximum weekly revenue because we just evaluate the revenue at this value.

01:40 So the revenue at this value is equal to 500 times 500 and then this minus 0 .5 times 500 to the square.

01:57 So then using our calculator we obtain a value of 125 ,000.

02:16 So that is the maximum revenue.

02:21 Now for the next question in part b of this problem we are told what price should the company charge for the funds and how many funds should be produced to maximize the weekly profit.

02:34 So in this case remember that the profit is just the revenue minus the cost...

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