Question: Office Enterprises (OE) produces a line of metal office file cabinets. The company’s economist, having investigated a large number of past data, has established the following equation of demand for these cabinets:

Q = 10,000 + 60 B – 100 P + 50 C where

Q = Annual number of cabinets sold

B = Index of nonresidential construction

P = Average price per cabinet charged by OE

C = Average price per cabinet charged by OE’s closest competitor

If the index forecast was wrong, and it turns out to be only 140 next year, what will be OE’s projected sales assuming the original price information of P = $40 and C = $35? Enter your answer as whole numbers.

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document