subject
Business, 06.04.2021 03:50 jacksoneaton

Phillips Inc. produces two distinct products, A and B. The products do not compete with each other in the marketplace; that is, neither cost, price, nor demand for one product will impact the demand for the other. Phillips' analysts have collected data on the effects of advertising on profits. These data suggest that, although higher advertising correlates with higher profits, the marginal increase in profits diminishes at higher advertising levels, particularly for product B. Analysts have estimated the following functions: Annual profit for product A = 0.9712 LN(XA) + 17.414
Annual profit for product B = 0.3970 LN(XB) + 16.109

where XA and XB are the advertising amount allocated to products A and B, respectively, in thousands of dollars, profit is in millions of dollars, and LN is the natural logarithm function. The advertising budget is $500,000, and management has dictated that at least $50,000 must be allocated to each of the two products.

Build an optimization model that will prescribe how Phillips should allocate its marketing budget to maximize profit.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 15:20
The systems analysis phase includes three activities – requirements modeling, data and process modeling, and consideration of development strategies. choose two of these activities, explain their differences, and discuss how they are used to accomplish the main objective which is to understand the proposed project.
Answers: 1
question
Business, 22.06.2019 20:20
As you have noticed, the demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. also, the current buyers of flip phones are mainly categorized under laggards. which of the following stages of the industry life cycle is the flip phone industry in currently? a. growth stage b. maturity stage c. decline stage d. commercialization stage
Answers: 2
question
Business, 23.06.2019 07:30
Which of the following commission structures creates sales people who are highly motivated to close a sales,because their entire income depends on it?
Answers: 1
question
Business, 23.06.2019 08:50
Walking through the grocery store, ramon sees a "buy 2, get 1 free" deal on laundry detergent. even though he currently has plenty of detergent he decides to take home all three bottles. ramon's decision seems to have been based mostly on his immediate need for the detergent the low price of alternative brands the limited income he presently earns the sale price offered for the detergent
Answers: 1
You know the right answer?
Phillips Inc. produces two distinct products, A and B. The products do not compete with each other i...
Questions
question
Computers and Technology, 30.06.2019 05:30
question
Mathematics, 30.06.2019 05:30
question
English, 30.06.2019 05:30
Questions on the website: 13722367