A herbal tea producer company has 24 different products in the market, each are produced in one of the 3 actories owned by the company. The weights of the products in monthly sales may vary depending on time of the year (demands of certain products shift to others in each of the 4 seasons), age of the products and market conditions, but yearly aggregate demand has a very strong corelation with the price of the product (Here, we ignore any other factor and assume that the yearly aggregate demand is directly and linearly effected by the price). The company found out that when the price for a packet of 20 herbal tea bags is 10 TL, yearly demand is 298900 packets. When the price increases to 11 TL, demand decreases to 298473 packets. On the cost side, the company has 1800000 TL of yearly administrative costs regardless of the price or the number of units sold, including the rents, depreciation of the buildings and other related assets and salaries of 58 workers (average monthly salary for white-collar and blue-collar workers are 5,000TL and 3,500 TL respectively). Additionally, approximately 165 TL cost per each packet of tea produced and sold (Assume that the total production is equal to total sales for the sake of simplicity). What is the optimal revenue? a. 8968779
A herbal tea producer company has 24 different products in the market, each are produced in one of the 3 actories owned by the company. The weights of the products in monthly sales may vary depending on time of the year (demands of certain products shift to others in each of the 4 seasons), age of the products and market conditions, but yearly aggregate demand has a very strong corelation with the price of the product (Here, we ignore any other factor and assume that the yearly aggregate demand is directly and linearly effected by the price). The company found out that when the price for a packet of 20 herbal tea bags is 10 TL, yearly demand is 298900 packets. When the price increases to 11 TL, demand decreases to 298473 packets. On the cost side, the company has 1800000 TL of yearly administrative costs regardless of the price or the number of units sold, including the rents, depreciation of the buildings and other related assets and salaries of 58 workers (average monthly salary for white-collar and blue-collar workers are 5,000TL and 3,500 TL respectively). Additionally, approximately 165 TL cost per each packet of tea produced and sold (Assume that the total production is equal to total sales for the sake of simplicity). What is the optimal revenue? a. 8968779
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
Transcribed Image Text:A herbal tea producer company has 24 different products in the market, each are produced in one of the 3
factories owned by the company. The weights of the products in monthly sales may vary depending on time of
the year (demands of certain products shift to others in each of the 4 seasons), age of the products and market
conditions, but yearly aggregate demand has a very strong correlation with the price of the product (Here, we
ignore any other factor and assume that the yearly aggregate demand is directly and linearly effected by the
price). The company found out that when the price for a packet of 20 herbal tea bags is 10 TL, yearly demand is
298900 packets. When the price increases to 11 TL demand decreases to 298473 packets.
On the cost side, the company has 1800000 TL of yearly administrative costs regardless of the price or the
number of units sold, including the rents, depreciation of the buildings and other related assets and salaries of
58 workers (average monthly salary for white-collar and blue-collar workers are 5,000TL and 3,500 TL
respectively). Additionally, approximately 165 TL cost per each packet of tea produced and sold (Assume that
the total production is equal to total sales for the sake of simplicity).
What is the optimal revenue?
O a. 8968779
O b. 50823675
O c. 53812675
Od. 215250700
e. 52307500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
