Magnolia, inc., manufactures bedding sets. the budgeted production is for 55,000 comforters this year. each comforter requires 7 yards of material. the estimated january 1 beginning inventory is 31,000 yards with the desired ending balance of 30,000 yards of material. if the material costs $4 per yard, determine the materials budget for the year.

Four key marketing decision variables are price (p), advertising (a), transportation (t), and product quality (q). consumer demand (d) is influenced by these variables. the simplest model for describing demand in terms of these variables is: d = k – pp + aa + tt + qq where k, p, a, t, and q are constants. discuss the assumptions of this model. specifically, how does each variable affect demand? how do the variables influence each other? what limitations might this model have? how can it be improved?