Explore BrainMass

Explore BrainMass

    profit maximization

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    ABC Inc. determined through regression analysis that its sales (S) are a function of the amount of advertising (measured in units) in two different media. This relationship is given by the following equation (X=newspapers, Y=magazines):

    S(X,Y) = 200X + 100Y - 10Xsq - 20Ysq + 20XY

    1. What is the level of newspaper and magazine advertising that maximizes the firms sales?
    2. What is the firms sales at the optimal values of newspapers and magazine advertising determined in part 1?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:54 am ad1c9bdddf
    https://brainmass.com/business/business-management/profit-maximization-regression-analysis-366862

    Solution Preview

    To find the optimal sales, we calculate the max. of the function by finding ...

    Solution Summary

    This solution helps explore the concept of profit maximization and regression analysis within the context of business management.

    $2.19

    ADVERTISEMENT