Home Paste A1 3 ABC 2. Insert Draw Page Layout Form A 1 Pricing in a UK market 2 AutoSave OFF Unit cost ($) Exchange rate ($/£) 7 Constant 8

Elasticity 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Arial Ready BI U ♥ | B ♥ | ◊ x✓ fx Pricing in a UK market 4 5 6 Parameters of demand function in UK market 27556783 -2.4 B Model 49 1.249 10 Accessibility: Good to go с GAGE MINDTAP cel Activity 2-Spreadsheet Modeling Video A company manufactures a product in the United States and sells it in England. The unit cost of manufacturing is $49. The current exchange rate (dollars per pound) is 1.249. The demand function, which indicates how many units the company can sell in England as a function of price (in pounds) is of the power type, with constant 27556783 and exponent -2.4. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Please use the What-If- Analysis dropdown list to answer the questions. Do not round intermediate calculations. X Download spreadsheet Pr01-16-afb269.xlsx a. Develop a model for the company's profit (in dollars) as a function of the price it charges (in pounds). Then use a data table to find the profit-maximizing price to the nearest pound. Assume that the price ranges from £45 to £100 in increments of £1. Round your answer for the maximum profit to the nearest dollar and your answer for the best price to the nearest pound. Choose the correct graph for the calculated profit. The correct graph is Back A. 400 Profit (S) 350 30000- 25000- graph A graph B graph C graph D 20000- 15000- Profit versus Price 10 B. () 40000 35000- 30000- 25000- Q Search this course 20000- 15000- Profit versus Price Next X (1 MINDTAP vity 2-Spreadsheet Modeling to the nearest pound. Choose the correct graph for the calculated profit. The correct graph is Back A. 40000 Profit (S) 35000- 30000- 25000- 20000 15000- 10000- 5000- 45 40000 35000- 30000 50 55 60 Profit versus Price 65 70 75 80 Price (£) Profit versus Price 85 90 95 7 100 105 B. () 40000 35000- 30000- 25000- 20000- 15000- 10000- 5000- 40000- 35000- 45 30000- 50 55 60 65 Profit versus Price 75 70 Price (£) Profit versus Price 80 Q Search this course 90 95 Next 100 X H A-Z INDTAP y2-Spreadsheet Modeling Back C. 15000+ 10000- 5000- 45 50 40000- Profit (S) 35000- 30000- 25000- 20000 15000 10000- 5000- 55 60 45 50 55 60 65 70 75 Price (£) 65 Profit versus Price 80 75 70 Price (£) 85 80 85 90 90 95 100 105 95 100 105 D. Profit (S) 15000+ 10000- 5000- 40000 35000- 30000- 25000- 20000- 15000- 10000- 45 5000- 45 50 50 55 55 60 60 65 65 Profit versus Price 70 75 80 85 90 95 100 Price (£) 75 Price (£) 70 Q Search this course 80 85 90 95 Next 100 X ? A-Z O C. Profit (S) 35000- 30000- 25000 Back 20000 Check My Work 15000- 10000- Maximum profit: $ 5000- 45 50 55 Reset Problem 60 JAN 14 65 70 75 80 85 90 Price (£) a 95 100 105 increases decreases 10 D. A Profit ($) 40000 35000- 30000- 25000- 20000 15000- Best price: E b. If the exchange rate varies from its current value, does the profit-maximizing price increase or decrease? Does the maximum profit increase or decrease? If the exchange rate decreases, the best price in pounds nd the maximum profit 10000- 5000 45 50 55 60 65 70 75 80 85 Price (£) 90 Nex