Hello everyone! I am here asking for help on two problems. I am having the worst possible time with these two. Help would be greatly appreciated!!
A businessperson has made the following observations about the relationship between the price and quantity demanded of his/her product:
(200,$117) (350,$64) (425,$39) (275,$87)
a. Find a reasonable demand function based on a linear Model.
b. Find the revenue function.
c. Find the quantity that will maximize your review
In your convenience store you sell chocolate bars. The variable cost of the chocolate is .35 per bar, but if you purchase them in quantities greater than or equal to 8000 bars at a time, then each bar costs .25. Each order that you place costs 500 in shipping and handling and other various charges. The storage costs are $.01 on the average inventory if you order less than 8000 bars at a time. Otherwise your storage costs are .02 on the average inventory. You believe that you can sell 60000 bars over the next year.
a) How many orders should you place to minimize overall cost ideally?
b) How many chocolate bars ideally should be purchased with each order?
c) What is your minimum cost?