1. Imagine that you are advising a small new tar dealership. They ask:

A) given the information below, what is the best price they should put on all the cars. assuming every buyer pays the same price and how much profit will they make ?

B) is there a better way to make profits and how much profit could they make ? why might this strategy be difficult to use? The firm can't change their costs. But they could use a different pricing scheme. not charging every customer the same price.

Fixed cost for business is $4000

Variable cost is $20.000 for each car they get from the manufacturer.

They anticipate the following customers.

Ms. Rich would pay upto $30.000

Mr. Upper Middle would pay up to $26,000

Ms. Middle would pay up to $22.000

Mr. Lower middle would pay upto $18000

Ms. Poor would pay upto $16000

Please give proper explanation , thanks.