Widgets and Ridgets

Widgets and Ridgets - should either have a minimum...

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Vrishank Jaiswal Veronica Castro Rajwar Saugat Group 2 MKTG 3321 Ritesh Saini T-Th 12:30pm Profit Maximizing for Widgets and Ridgets When deciding on which widget to use, I chose to make the minimum performance 6 and the minimum aesthetic 4 which would cost $8 per unit and 12 units would be sold. Either way whether you pick the performance a 6 and aesthetics at 4 or vice versa 12 units will be sold. The cost to produce those 12 units would be $96. If you did the minimum at 6 on both then 21 units would be sold but the cost to produce them would be $420. To maximize profits the widget
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Unformatted text preview: should either have a minimum performance of 6 and aesthetic of 4 or vice versa. Assuming that each widget is sold at $9 for a $1 profit the cost to produce will be much less and more can be sold. 16 will be sold with reliability at 6 and convenience at 4 being built at $8 a unit. If it was vice versa (convenience at 6 and reliability at 4) then only 15 would be sold. So to maximize profits there should be a minimum reliability of 6 and convenience of 4. The cost of producing 16 ridgets would be $128....
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