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MegaSports,Inc

Question 41

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MegaSports,Inc.produces two high-priced metal baseball bats,the Slugger and the Launcher,that are made from special aluminum and steel alloys.The cost to produce a Slugger bat is $100,and the cost to produce a Launcher bat is $120.We cannot assume that MegaSports will sell all the bats it can produce.As the selling price of each bat model-Slugger and Launcher-increases,the quantity demanded for each model goes down.​
Assume that the demand,S,for Slugger bats is given by S = 640 − 4PS and the demand,L,for Launcher bats is given by L = 450 − 3PL where PS is the price of a Slugger bat and PL is the price of a Launcher bat.The profit contributions are PS S − 100S for Slugger bats and PL L − 120L for Launcher bats.Develop the total profit contribution function for this problem.

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Solving S = 640 − 4PS for PS,we get: PS = 1...

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