You are asked to help in setting the subscription rates of a monthly magazine. As expected, the major component of cost is fixed or sunk; so we ignore it in what follows. Variable cost including printing, shipping, and mailing comes to $30 per year per subscriber. The publisher has an extensive data set suggesting that annual magazine subscription demand is: D = 100 – p. Here p is the price of an annual subscription.SHOW ALL EXCEL FORMULAS AND INPUTS FOR SOLVER (QUESTION #3)1) If the publisher sets p = 47 what will her profit be?2) Write down an algebraic expression for total profit to the publisher as a function of p.3) Use SOLVER to compute the profit maximizing choice of p.4) Suppose the magazine has another source of revenue: advertising. Consumers do not care about the amount of advertising contained in each issue, but advertisers care about the number of subscribers. For every subscription purchased, the magazine gets $20 in advertising revenue. Taking into account the revenue from advertising, should the publisher lower or raise its annual subscription price p? What should the new profit maximizing level of p be?This solution determines the profit maximizing price in the given case by using Solver tool in MS Excel.
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.