rocketFrog
New member
- Joined
- Aug 15, 2022
- Messages
- 15
Hi everyone,
I'm working on a project using quadratic equations, where we're supposed to determine the right selling price of a product to maximize profit at the right quantity to sell. My team is working on a standing desk company (I'm doing the math part), and I've spent quite a lot of time analyzing the market, gathering data etc, having gathered the data, I took two data points and got a linear demand equation using them to make things easier.
Here's the work I have so far:
Our linear equation modeled using real world data:
q = -8.8p + 6320
q - quantity
p - price
P = pq - cq
P - profit
c - production cost
c = $190 + $7000/q (Here the $7000 cost includes tools, marketing and storage price and it is supposed to be distributed over q, the qty of the desks to be sold. The $190 cost is a wooden board, desk legs and wood treatment, so this is per desk)
If I replace q with the demand equation in the Profit equation:
P = p(-8.8p + 6320) - (190 + 7000/(-8.8p+ 6320))(-8.8p + 6320) <-- the 2 demand equations cancel out
P = p(-8.8p + 6320) - (190 + 7000)
P = -8.8p^2 + 6320p - 7190
Now, IIRC the answer should be in the graph of this function but it actually makes no sense. Am I doing something wrong?
Any help is greatly appreciated!
I'm working on a project using quadratic equations, where we're supposed to determine the right selling price of a product to maximize profit at the right quantity to sell. My team is working on a standing desk company (I'm doing the math part), and I've spent quite a lot of time analyzing the market, gathering data etc, having gathered the data, I took two data points and got a linear demand equation using them to make things easier.
Here's the work I have so far:
Our linear equation modeled using real world data:
q = -8.8p + 6320
q - quantity
p - price
P = pq - cq
P - profit
c - production cost
c = $190 + $7000/q (Here the $7000 cost includes tools, marketing and storage price and it is supposed to be distributed over q, the qty of the desks to be sold. The $190 cost is a wooden board, desk legs and wood treatment, so this is per desk)
If I replace q with the demand equation in the Profit equation:
P = p(-8.8p + 6320) - (190 + 7000/(-8.8p+ 6320))(-8.8p + 6320) <-- the 2 demand equations cancel out
P = p(-8.8p + 6320) - (190 + 7000)
P = -8.8p^2 + 6320p - 7190
Now, IIRC the answer should be in the graph of this function but it actually makes no sense. Am I doing something wrong?
Any help is greatly appreciated!