I need advice on how to do this question.
A small magazine publisher wants to determine the best combination of two possible magazines to print for the month of July. Backyard magazine, which he has published for years, is a steady seller. The publisher wants to make sure he prints at least 400 copies to meet his demand from the newsstands. Porch is a new venture, and has received the benefit of a great deal of advance publicity. The publisher is hoping that by positioning it near Backyard he will pick up some spill over demand from his regular readers. Also, he is hoping that the advertising campaign will bring in a new type of reader from a potentially very lucrative market. He wants to print at least 300 copies of Porch. The cover price for Backyard is $3.50; he is pricing Porch at $4.50, because of the magazines in this market seem to be able to command a higher price. The publisher has 50 hours of printing time available for this production run. He also has 30 hours in the collation department, where the magazines are actually assembled. Backyard requires 2.5 minutes per copy to print and 1.8 minutes per copy to collage. Because of its larger size, Porch will require 3 minutes to print and 2 minutes to collate. The publisher wants to maximize his revenues
1. Answer the following items concerning the Backyard case:
a. What is the publisher trying to optimize? Is he trying to maximize or minimize?
b. Write the objective function to support this analysis.
c. What inputs do you need to support your analysis?
d. Is there any extraneous data you have been given that you will not need?
e. What criteria has the publisher given you to support the analysis?
f. Create a spreadsheet model that supports your analysis.
g. Look carefully at your criteria. Surplus time is when you have extra time that is not being used. Is all of the printing time being used? What about the collation time? Describe what this may mean to you as the publisher.
Here are some tips on how to approach this problem.
a. See last sentence of instructions
b. Write a function that calculates the revenues from the sale of both magazines. The restrictions are minimum copy numbers and maximum available printing and collating time. (See g. below)
c. & d. depend on ...
The inputs, criteria and analysis of a small publishing company is examined. The criteria which has publisher given to support an analysis is given.
I have never had to use this before, but I am running into dead ends.Please help me.
I am working on a essay from questions for school and I need a little help. I have answered most of my paper, but I have 4 that I need help with.
I have chosen Wal-Mart as the company to use in my paper.
1) Is this company operating in a perfectly competitive market? Why or why not?
I believe that this would be no because the prices can change so drasticly due to competition. Is that correct?
2) If the owner of the company asked you to assess whether or not they were using the optimal amount of an input (given a set price for that input), what economic criterion would you use in your analysis?
I am totally lost here. They gave us simulations in class to play with, but I am having trouble understanding how the simulations went along with this question.
3) If you were asked to assess the economic profitability of this company, what economic tools would you use in your analysis?
I am not sure understand what it means by tools. Would this be finacial statements?
4) What is the elasticity of demand for the product (or one of the products) that is produced by the company? Given this elasticity of demand, how should the company price their product in this market? Give justification for your answer.
Would it be strategic pricing to go along with the competition to increase sales?
Thank you for your time and help.