1.5 A company has estimated the selling prices and variable costs of one of its products as follows: RM Probability RM Probability 40 0-30 20 0:55 50 0-45 30 0.25 60 0-25 40 0-20 Given that the company will be able to supply 1,000 units of its product each week irrespective of the selling price, and that selling price and variable cost per unit are independent of each other, calculate the probability that the weekly contribution will exceed $20,000. 1.6 A company is considering the pricing of one of its products. It has already carried out some market research with the following results: The quantity demanded at a price of RM 100 will be 1,000 units The quantity demanded will increase / decrease by 100 units for every RM 50 decrease / increase in the selling price The marginal cost of each unit is RM 35 Note that if Selling Price (P) = a - bx then Marginal Revenue = a - 2bx Calculate the selling price that maximises company profit