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Orlov [11]
3 years ago
14

To increase the popularity of its new range of smartphones, gizmopro inc., a mobile phone manufacturer, offered several accessor

ies for free to customers who bought the smartphones. however, the management of gizmopro inc. soon found this an unsustainable practice. the company then decided to offer discounts on the accessories instead of giving them for free. these actions of the management of gizmopro inc. are aimed at _____.
Business
1 answer:
ikadub [295]3 years ago
6 0

Answer: This question lacks the following answers:

a. market share pricing

b. profit maximization

c. demand orientation

d. sales maximization

<u>The correct answer is b)</u>

Explanation:

The practice of giving away free things (mobile accessories) can be good after the launch of a new product range, or even when the company itself is entirely new. However, it is not feasible in the long run, as the company <u>does not generate profit</u> from giving products for free.

Giving discounts is definitely more lucrative, as the discount itself provides enough of an incentive for the customer to buy the accessory. On the company side, <em>profit </em>will be generated (although decreased with the discount, but still generated compared to giving free things).

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  a) maximize 12x+16y subject to x+y≤60; x+2y≤80; 2x-3y≥0; x-9y≤0.

  b) 40 fish and 20 beef dinners

  c) $800

Explanation:

Let x and y represent the numbers of fish and beef dinners to prepare, respectively. Then the relations these values must satisfy are ...

  x + y ≤ 60 . . . . . a maximum of 60 dinners will be sold

  0.25x + 0.50y ≤ 20 . . . . . kitchen hours cannot exceed 20

  x/y ≥ 3/2 . . . . . . at least 3 fish dinners for each 2 beef dinners will be sold

  y ≥ 0.10(x +y) . . . . at least 10% of dinners sold will be beef

While satisfying these relations, we want to maximize the profit function:

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a) The linear programming problem can be formulated as ...

  Maximize 12x +16y, subject to ...

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  • x + 2y ≤ 80
  • 2x - 3y ≥ 0
  • x - 9y ≤ 0

__

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The solution is (x, y) = (40, 20).

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  • 20 beef dinners

__

c) The maximum earnings are estimated to be ...

  ($12)(40) +($16)(20) = $800

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