Identify and Define the Problem *Please help*

[morpheus]

State the problem. Write the issue, and identify any relevant conditions that effect the situation.

How much should we charge in order to sell 2300 burgers each month at each location? Below is a research done throughout our market.

Research-Market Test on Unit Price

Sale Price Average Units sold per location
2.49 3062
2.59 2835
2.75 2498
2.99 2078
3.49 1055

What do you think the situation is (state the problem)?
What do we have?
Is there any information missing that we need to find in order to be able to solve?


I'll be honest; my wife and I recently had our first baby; therefore, I have missed a couple weeks of class. My Professor went over a lot of these types of questions in class; however, he is about 2 months behind on posting the notes from class and has been impossible to reach. That being said, here is what I have come up with so far... Am I on the right track at all?

"We are being asked to estimate the Sale Price (x) for each individual burgers (n), in order to ensure that each location sells a minimum of 2300 units per month. In order to determine the best possible price, I would like to have a manufacturing cost (c) for each unit."

 

[stapel]

How much should we charge in order to sell 2300 burgers each month at each location?...

"We are being asked to estimate the Sale Price (x) for each individual Trio (n), in order to ensure that each location sells a minimum of 2300 units per month. In order to determine the best possible price, I would like to have a manufacturing cost (c) for each unit."

What is a "Trio"? Why are you needing to estimate the prices, when you were given the prices in the table? Why would you need to manufacturing cost, when you are told that you're needing to find the selling price which will ensure a certain sales volume?

 

[morpheus]

What is a "Trio"? Why are you needing to estimate the prices, when you were given the prices in the table? Why would you need to manufacturing cost, when you are told that you're needing to find the selling price which will ensure a certain sales volume?

Good question, it's suppose to be burgers... I'll change it. So basically, I'm just paraphrasing what's being asked?

 

[Deleted member 4993]

State the problem. Write the issue, and identify any relevant conditions that effect the situation.

How much should we charge in order to sell 2300 burgers each month at each location? Below is a research done throughout our market.

Research-Market Test on Unit Price

Sale Price Average Units sold per location
2.49 3062
2.59 2835
2.75 2498
2.99 2078
3.49 1055

What do you think the situation is (state the problem)?
What do we have?
Is there any information missing that we need to find in order to be able to solve?


I'll be honest; my wife and I recently had our first baby; therefore, I have missed a couple weeks of class. My Professor went over a lot of these types of questions in class; however, he is about 2 months behind on posting the notes from class and has been impossible to reach. That being said, here is what I have come up with so far... Am I on the right track at all?

"We are being asked to estimate the Sale Price (x) for each individual burgers (n), in order to ensure that each location sells a minimum of 2300 units per month. In order to determine the best possible price, I would like to have a manufacturing cost (c) for each unit."

Since no particular method has been suggested in the question - if I were to do this problem:

-Use ms-excel and find the best-fit line through these points and the regression equation
- Use the regression equation to calculate selling price.