Cost V.S Revenue
The Graph:
In this graph, you can see Jaques can make a maximum revenue of $790.02. In the future, our maximum revenue would increase with popularity of our company because Jaques conducted a small survey including 30 potential consumers which corresponds to the low revenue. To reach a our maximum revenue, we would need to sell each pair of Jaques sunglasses for $54.80. In this graph, you can also see the two break even co-ordinates (10.2, 510) and (109.2, 390). Profit= Revenue- Cost Profit: -0.1456x2 + 15.958x +352.77 = -1.413x + 514.1 0= 0.1456x2 -15.958x -352.77 - 1.413x + 514.1 0= 0.1456x2 -17.37x + 161.33 |
Algebraically Verifying:
The two break even points correspond to the x-intercept co-ordinates on the graph with the Quadratic formula . This determines that our company will start to make profit at either $10.20 or $109.20. These numbers show the price range of potential profit as well which is in between $10.20 and $109.20.
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Cost V.S. Revenue
In this graph, you can also see that our break even points are (10,500) and (110,380), this mean's that Jaques will start to make a profit at a price of $10 and $110.
Revenue V.S Number of People Willing to Buy
R= Revenue, C= Cost , N= Number of people willing to buy
R= -2.49x2 + 89.809x + 75.625
R= -2.49(x2 -36.12x) + 75.625
R= -2.49(x2 - 36.12x + 326.14) + 810.94 + 75.625
R= -2.49(x - 18.06)2 + 886.57
Therefore, the maximum revenue is $886.57 when 18 people buy our product at the price that would give us maximum revenue.
R= -2.49x2 + 89.809x + 75.625
R= -2.49(x2 -36.12x) + 75.625
R= -2.49(x2 - 36.12x + 326.14) + 810.94 + 75.625
R= -2.49(x - 18.06)2 + 886.57
Therefore, the maximum revenue is $886.57 when 18 people buy our product at the price that would give us maximum revenue.
Survey Table
We composed a small survey to see the results of how many people would pay for our product at various price points. Our price points we gave our potential customers ranged from $15.00-$120.00. Our most chosen price point was $30 and our least chosen price point was $90. We chose these price points because other sunglasses companies sell their designer glasses at a much higher prices and we wanted to make a difference by putting reasonable prices points for our products.
Price of our Product
In the making of Jaques, we conducted a survey to see what price would be the most consistent price point the average person would pay for a pair of high quality sunglasses. The results of this survey concluded that the average consumer would pay $45.00 for a pair of our sunglasses. When finding the maximum revenue, my relation concluded that $54.80 would reach our maximum revenue of $790.02. With this information, I found a price in between $54.80 and $45.00 and concluded that our selling price for all of our Jaques eye wear will be $49.99.
The selling price for maximum revenue is $54.80 whilst our selling price per product for maximum profit is $59.65.
The selling price for maximum revenue is $54.80 whilst our selling price per product for maximum profit is $59.65.