IOR Kavertising Ás Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,600. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 4 contracts. This is down 2 contracts from the figure last year, when your company charged only $2,400. (a) Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development. q(p) = (b) On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour. R(p) = (c) The costs to Montevideo Productions are estimated as follows. Fixed costs: $130,000 per month Variable costs: $70,000 per contract Express Montevideo Productions' monthly cost as a function of the number g of contracts. Cq) = Express Montevideo Productions' monthly cost as a function of the hourly production charge p. C(p) =
IOR Kavertising Ás Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,600. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 4 contracts. This is down 2 contracts from the figure last year, when your company charged only $2,400. (a) Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development. q(p) = (b) On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour. R(p) = (c) The costs to Montevideo Productions are estimated as follows. Fixed costs: $130,000 per month Variable costs: $70,000 per contract Express Montevideo Productions' monthly cost as a function of the number g of contracts. Cq) = Express Montevideo Productions' monthly cost as a function of the hourly production charge p. C(p) =
Chapter4: Systems Of Linear Equations
Section4.3: Solve Mixture Applications With Systems Of Equations
Problem 4.59TI: The manufacturer of a weight training bench spends $15 to build each bench and sells them for $32....
Related questions
Topic Video
Question
Transcribed Image Text:ION Kavertising Ás Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You
currently charge each client an hourly development fee of $2,600. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 4
contracts. This is down 2 contracts from the figure last year, when your company charged only $2,400.
(a) Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development.
q(p) =
(b) On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $o per hour.
R(p) =
(c) The costs to Montevideo Productions are estimated as follows.
Fixed costs: $130,000 per month
Variable costs: $70,000 per contract
Express Montevideo Productions' monthly cost as a function of the number q of contracts.
C(q) =
Express Montevideo Productions' monthly cost as a function of the hourly production charge p.
C(p) =
(d) Express Montevideo Productions' monthly profit as a function of the hourly development fee p.
P(p) =
Find the price it should charge to maximize the profit (in dollars per hour).
p = $
per hour
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
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
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
