marsha andersen a product manager at spencer is charged with recommending a price fo 465542
Marsha Andersen, a product manager at Spencer, is charged with recommending a price for the item. Based on her experience with similar items, focus group responses, and survey information, she has estimated the number of units that can be sold at various prices:
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marsha andersen a product manager at spencer is charged with recommending a price fo 465542
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|
Price: |
Quantity: |
|
$79.99 |
15,000 |
|
$69.99 |
20,000 |
|
$59.99 |
30,000 |
|
$49.99 |
45,000 |
|
$39.99 |
65,000 |
Required:
a) Calculate expected profit for each price.
b) Which price maximizes company profit.
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