Back to Icy: It turns out that you can also sell Icy Hot at the local sport stadium

during home games. You have been given information about the (average) expected

demand at the various price levels during home games (see table below).

The variable unit costs are $0.65 and the fixed costs are $50. This time you shall

create a simple spreadsheet model where you include the variable unit costs and

fixed costs in separate cells. Then you shall illustrate in a graph how the profit varies

according to the price level (similar to that presented in Figure 1.3). What price

should Icy charge for Icy Hot at the sport stadium during home games to maximize

(expected) profit?

Transcribed Image Text:

Price ($) Demand 0.5 600 1 500 1.5 450 2 390 2.5 350 3 250 3.5 150 4 50