Calculating price to maximize revenue and profit, while maximizing market penetration.
Not what you're looking for?
Disco is developing a new hard drive for use in HAL-compatible PC's
They estimate the demand schedule for the new product will be as follows:
Price: 100 80 60 40 20 0
Quantity (000): 0 30 60 90 120 150
The fixed cost will be $ 1000
Unit variable cost will be $ 40.00 per unit.
(a) What is the price that will maximize revenue?
(b) What is the price that will maximize profit?
(c) With the objective of maximizing market penetration in the first year after product introduction, what is the lowest price at which the profit will be no worse than zero?
Purchase this Solution
Solution Summary
The price to maximize and profit while maximizing the market penetration is determined. Fixed cost variables are analyzed. You will find the answer to this puzzling question inside.
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.