General Inc. shipped 100 million coupons in products it sold in 2013. The coupons are redeemable for thirty cents each. General
anticipates that 70% of the coupons will be redeemed. The coupons expire on December 31, 2014. There were 45 million coupons redeemed in 2013, and 30 million redeemed in 2014.
1. What was Gerneral`s coupon liability as of December 31, 2013?
2.What was General`s coupon promotion expense in 2013?
3. What was Gerneral`s coupon promotional expense in 2014?
1. What was Gerneral`s coupon liability as of December 31, 2013?
2.What was General`s coupon promotion expense in 2013?
3. What was Gerneral`s coupon promotional expense in 2014?
1 answer:
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Answer:
And we can solve for y and we got:
And using condition (1) we can solve for x and we got:
So then the minimum cost for this case would be:
Explanation:
For this case the graph attached illustrate the problem for this case
We know that the total area is 60000, so then we have:
If we solve for x we got:
(1)
Now we can define the cost function like this:
We can use the condition (1) and if we replace in the cost function we have:
Since we need to minimize the cost, we can derivate the function in terms of y and we got:
And we can solve for y and we got:
And using condition (1) we can solve for x and we got:
So then the minimum cost for this case would be:
