Webster Products Group has conducted a major market survey of its product sales of automotive accessories for the next year. The survey has produced the range 6f price/quantity combinations shown in the following table:

Webster’s maximum production capacity is 30,000 units and the relevant range of production is 12,000 to 30,000 units. Within the relevant range, fixed costs are \($4.5\) million per period and variable costs are \($85\) per unit. Webster’s marketing manager has established an upper and lower price range of \($250-and\) \($600,\) respectively, with possible price increments of \($50\) within that range.

a. Calculate the possible price/quantity combinations within the relevant range of production and the permissible pricing range, and determine the optimum level of sales that will maximize profitability.

b. What will be Webster’s net profit for that optimum price/quantity combination?

c. What is the number of units that must be sold at the optimum selling price to achieve Webster's target profit of \($3.5\) million?

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Price per Unit Quantity $250 33,750 300 30,500 350 27,250 400 24,000 450 20,750 500 17,500 550 14,250 600 11,000