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Optimal Advertising

Optimal Advertising

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Optimal Advertising

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  1. Optimal Advertising

  2. Wooden-Box Inc. makes wooden boxes and sells them at a price that provides a unit contribution, (P-V)= $5 per box. The market research department has estimated the function that predicts the number of boxes that are sold because of the advertising. The number of boxes sold due to the size of the advertising expenditure can be estimated by the function • Q = 1,500A0.44 • where Q = quantity sold • A = the amount of money spent on advertising • If the optimal amount of advertising is spent, then what is the profit after advertising (aka marketing profit)?