Using Excel, Tough Scrubbers estimates the quarterly demand for their kitchen sponges to be Q^d= 5,600 - (25 × P). If the actual demand for their kitchen sponges is 5,600 when a price of $1 per sponge is charge, what is the estimated residual? A)- 25 B)- 50 C)0 D)25

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Quizplus · Accepted Answer

Substitute P = 1 in the Q^d equation: Q^d = 5,600 - (25 × 1) = 5,575 The estimated residual is the difference between actual demand (5,600) and estimated demand (5,575). Residual = Actual demand - Estimated demand = 5,600 - 5,575 = 25 Therefore, the best choice is D) 25.

Using Excel, Tough Scrubbers Estimates the Quarterly Demand for Their