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ROverPlus, a pet product superstore is considering pricing a new RoverPlus labeled dog food. The Enter question
company will buy the premium dog food from a company in Indiana that packs the product with a
RoverPlus label. Rover pays $6 for a 50-pound bag delivered to its store. The company also sells Royal Dog
Food (under the Royal Dog Food Label), which it purchases for $9 per 50-pound bag and sells for $16.99.
The company currently sells 25,000 bags of Royal Dog Food per month, but that is expected to change
when the RoverPlus brand is introduced. The company will continue to price the Royal Dog Food brand at Continue to post
$16.99. The quantity of RoverPlus and the quantity of Royal Dog Food that will be sold at various prices for
20 questions remaining
Royal are estimated as:

Price of     Quantity     Quantity

RoverPlus  RoverPlus    Royal
$8.99        35,000         11,000 Snap a photo from your
$9.99        34,500         11,300 phone to post a question
$10.99       34,000        11,500 We'll send you a one-time download
$11.99       33,000        12,000 link
$12.99       30,000        13,000
$13.99       25,000        14,000
$14.99       15,000        15,000 888-888-8888 Text me
$15.99       10,000        19,000
$16.99        5,000         21,000 By providing your phone number, you agree to receive a one-time
automated text message with a link to get the app. Standard
messaging rates may apply.
For example, if RoverPlus is priced at $8.99, the company will sell 35,000 bags of RoverPlus and 11,000
bags of Royal at $16.99. On the other hand, if the company prices RoverPlus at $16.99, it will sell 5,000 bags
of RoverPlus and 21,000 bags of Royal at $16.99. This is 4,000 few bags of Royal than is currently being
sold.
My Textbook Solutions
Solve:

A: Calculate the pro t-maximizing price for the RoverPlus brand taking into account the effect of the sales
of RoverPlus on sales of the Royal Dog Food brand.

B: At the price calculated in part A, what is the incremental pro t over the pro t earned before the
introduction of the RoverPlus branded dog food? Introduction Operations Principles of
to Materials... and Supply... Corporate...
8th Edition 14th Edition 10th Edition

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A. Pro t-maximizing price for the RoverPlus brand:

B. Incremental pro t:

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Practice with similar questions

Q: RoverPlus, a pet product superstore, is considering pricing a new RoverPlus labeled dog food. The company will buy
the premium dog food from a company in Indiana that packs the product with a RoverPlus Label. Rover pays $6 for a
50-pound bag delivered to its store. The company also sells Royal Dog food (under the Royal Dog Food Label), which
its purchase for $9 per 50-pound bag...

A: See answer 100% (1 rating)

Q: RoverPlus, a pet product superstore, is considering pricing a new RoverPlus labeled dog food. The company will buy
the premium dog food form a company in Indiana that packs the product with a RoverPlus label. Rover pays $6 for a
50-pound bag delivered to its store. The company also sells Royal Dog Food (under the Royal Dog Food label), which it
purchases for $9 per 50-pound bag and...

A: See answer 100% (1 rating)

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