QBA Practice Exam 2

QBA Practice Exam 2 - increase by 10 bags. Silvia also...

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Number 2 POSTED BY ADMIN ON NOVEMBER 17, 2011  ADD COMMENTS Question #1 Silvia operates a small snack stand at the Weeping Willows Ski Resort. Weeping Willows offers alpine (downhill) and cross country ski trails. Her one and only product is a snack mix called Alpine Delite. Silvia is currently charging $4.95 per bag. The number of bags she sells depends on her price as well as the price Jacob charges for a competing product. Currently Jacob is charging $5.25 for his product. At these prices Silvia is selling 100 bags per day. She has tried some different prices in the past and has recorded Jacob’s price at the time. Silvia has made the following observations. For every $0.25 she raises her price, sales decrease by 10 bags; and for every $0.25 she lowers her price sales
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Unformatted text preview: increase by 10 bags. Silvia also observed that no matter what her price, Jacobs price has the following effect. For every $0.25 he raises his price her sales go up by 5 bags, and for every $0.25 he lowers his price her sales go down by 5 bags. Create a model for Silvias business ( a price quantity model ). Question #2 Do a sensitivity analysis of Silvias model. Find out the sales quantity at 4.50, 4.75, 5.00, 5.25, 5.50 for both Sylvia and Jacob. Question #3 Optimize the model for the highest profit for Sylvia. (Use Solver) Question #4 Bobs Sandwich empire has been tracking their advertising and revenues for the last several quarters and has gathered the following data: Adv Rev 18 105 12 72 5 40 4 44 24 135 26 122 15 88 12 77 16 105 10 67 15 98 12 54...
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