D. Pizza King (PK) and Noble Greek (NG) are competitive pizzachains. PK believes there is a 30% chance that NG will charge $8per pizza, a 50% that NG will charge $10 per pizza, and a 20%chance that NG will charge $12 per pizza. If PK charges price p1and NG charges price p2, PK will sell 100 + 25(p2 – p1) pizzas. Itcosts PK $6 to make a pizza. PK is considering charging $7, $8, $9,$10, or $11 per pizza. To maximize its expected profit, what priceshould PK charge for a pizza? Please use Excel and include allformulas used.
