Case Study Vignette: Smartphone Accessories Two companies, Smarten Up and Accessories Plus, have two very similar smartphone accessories coming out. They have collected data over the past few months from test markets, and have determined the demand function for each of the two accessories. You are a writer for Consumer Reports magazine. Based on the information, it is your job to determine whose accessory will be more profitable.For Smarten Up, the quantity x of these accessories demanded each week is related to the wholesale unit price p by the following equation.x =48?????0.08 The quantity x of these accessories demanded each week for Accessories Plus is related to the wholesale unit price p by the following equation.p = 54 – 0.14 x First, for each company, determine what unit price would maximize revenue. For each company,determine the optimal price by both calculating what price would maximize the revenue function and what price would yield unitary demand.The weekly cost function to make x amount of the accessories produced by Smarten Up is C(x) = 7.54 x + 373.78 The weekly cost function to make x amount of the accessories produced by Accessories Plus is C(x) = 0.08×2 + 5.22 x + 253.97 Based on this information, which company’s accessory will be more profitable? And do you have any suggestions for the company whose accessory is less profitable (this last question is more open ended, there is no specific correct answer. This is your chance to be creative and come up with your own unique advice for this company)?
