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

It is expected that next year’s nonresidential construction index will stand at 160, OE’s average price will be $40, and the competitor’s average price will be $35.

Forecast annual sales. Enter your response as a whole number without the dollar sign.

Price: $2.99

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