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City Q P I A Psub Pop ...

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Accounting

City Q P I A Psub Pop
1 32.92 1.89 32.4 4.38 2.08 98.7
2 28.51 1.94 29.9 4.12 2.06 104.5
3 33.94 1.99 29.1 5.06 2.15 105.1
4 33.45 2.04 28.6 5.36 2.18 106.9
5 35.68 2.09 30.2 5.38 2.18 108.9
6 29.01 1.89 31.4 3.47 1.99 115.2
7 30.68 1.94 30.3 4.06 2.05 117.8
8 43.14 1.99 30.4 5.29 2.17 120.2
9 20.84 2.04 28.6 3.39 1.98 120.8
10 31.27 2.09 26.3 5.12 2.16 122.7
11 35.45 1.89 26.5 4.44 2.09 122.9
12 32.14 1.94 29.5 4.18 2.06 124.6
13 43.02 1.99 29.1 5.57 2.2 125.8
14 34.73 2.04 31.2 3.57 2 131.9
15 43.14 2.09 23.8 6.43 2.39 133.1
16 33.17 1.89 28.8 3.95 2.04 135.6
17 41.59 1.94 29.3 4.04 2.05 136.5
18 32.1 1.99 27.4 4.36 2.08 141.8
19 45.74 2.04 27.8 5.81 2.23 144.8
20 35.92 2.09 30.2 4.63 2.11 150.1

  1. Suppose we decide to charge a per ounce price of $2, while at the same time our rival charges a price of $2.15. All else equal, what would you expect sales to be? How confident are you in your forecast? Explain.

2. Suppose we are charging a price of $2 and our current marginal cost is $1.50 Are we maximizing profits at this price? If not, should we raise or lower price? Why?

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