Need answer for Part D only Television Advertising As Sales Manager for Montevideo Productions, Inc., you are planning to review the priices you charge clients for television advertisementdevelopment. You currently charge each client an hourly development fee of $2,700. With this pricing structure, the demand, measured by the number of contractsMontevideo signs per month, is 3 contracts. This is down 4 contracts from the figure last year, when your company charged only $2,300.(a) Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development.q(p) =(b) On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging So per hour.R(p) = (c) The costs to Montevideo Productions are estimated as follows.Fixed costs: $110,000 per monthVariable costs: $60,000 per contractExpress Montevideo Productions' monthly cost as a function of the number q of contracts.C(q) =Express Montevideo Productions' monthly cost as a function of the hourly production charge p.C(p) =(d) Express Montevideo Productions' monthly profit as a function of the hourly development fee p.P(p) -Find the price it should charge to maximize the profit (in dollars per hour).per hour

Solution of Part A: Q(p)= -p/100 + 30 Solution of Part B: R(p)= 30p Solution of…

Answered: (d) Express Montevideo Productions'…

(d) Express Montevideo Productions' monthly profit as a function of the hourly development fee p. P(p) - Find the price it should charge to maximize the profit (in dollars per hour). per hour

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Concept explainers

Perception in Marketing

In marketing, perception is referred to as the meaningful information, awareness, impressions, and opinions that the consumers have for the products, services, reputation, and values of a firm. In simple terms, perception is the way the firm is viewed and understood by the consumers from the information gathered and available to them.

Question

Need answer for Part D only

Television Advertising As Sales Manager for Montevideo Productions, Inc., you are planning to review the priices you charge clients for television advertisement
development. You currently charge each client an hourly development fee of $2,700. With this pricing structure, the demand, measured by the number of contracts
Montevideo signs per month, is 3 contracts. This is down 4 contracts from the figure last year, when your company charged only $2,300.
(a) Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development.
q(p) =
(b) On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging So per hour.
R(p) =

(c) The costs to Montevideo Productions are estimated as follows.
Fixed costs: $110,000 per month
Variable costs: $60,000 per contract
Express Montevideo Productions' monthly cost as a function of the number q of contracts.
C(q) =
Express Montevideo Productions' monthly cost as a function of the hourly production charge p.
C(p) =
(d) Express Montevideo Productions' monthly profit as a function of the hourly development fee p.
P(p) -
Find the price it should charge to maximize the profit (in dollars per hour).
per hour

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