4800 M itation 4. Cal's son is studying in the MBA program at UMUC. He tells his father that profit maximization occurs when the marginal cost (MC) - marginal revenue (MR). Cal understands that his marginal cost is the same as his variable cost or $2.649 per gallon Technically, marginal cost is the added cost from selling One more gallon. Gallons sold per Price Revenue (pricex gallons) Variable Cost Cost per Gallon (cost per unit Fixed cost per day xvolume) S 2.649 S 9,536.40 $ 250.00 Total Cost Fixed Variable) day Daily Profit (revenue - all costs) 146. 5 9,932.40 $ 9.786.40 Cal asks you for a chart to show how profits vary with sales volume, assuming that he sells an additional 400 gallons for each 1 cent decrease in price. Also, he wants to know how much he can lower his price without losing money. Given that you know the price and quantity of gallons sold so far, and that Cal's cost per gallon is $2.649 per gallon and his fixed cost is $250 per day. complete the table to the right. 3600 4DDO 4400 4800 5200 5600 6000 6400 6900 7200 7600 8000 8400 8800 9200 2.739 S $ 2.749 S 2.739 S 2.729 $ 2.719 S 2.709 S 2.699 $ 2.689 S 2.679 $ 2.669 S 2.659 S 2.649 S 2.639 S 2629 S 2.619 95 5. Once you calculate total profit, what is the profit-maximizing price Supply and Demand Graph Profit Maximization