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You have designed a new style of sports bicycle! Now you want to make lots of...

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Question

Basic Math

You have designed a new style of sports bicycle!

Now you want to make lots of them and sell them for profit.

Your costs are going to be:

  • $700,000 for manufacturing set-up costs, advertising, etc
  • $110 to make each bike

Based on similar bikes, you can expect sales tofollow this "Demand Curve":

  • Unit Sales = 70,000 ? 200P

Where "P" is the price.

For example, if you set the price:

  • at $0, you just give away 70,000 bikes
  • at $350, you won't sell any bikes at all
  • at $300 you might sell 70,000 ? 200×300 =10,000 bikes

So ... what is the best price? Do NOT enter theDOLLAR sign.

Answer & Explanation Solved by verified expert
4.2 Ratings (575 Votes)
How many you sell depends on price so use P for Price as thevariableUnit Sales 70000 200PSales in Dollars Units Price 70000 200P P 70000P    See Answer
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