5. Training Inc. (6 points) Training Inc. is a Personal Fitness Training company that specializes in personal training at each individual client's home. The company serves four geographical regions: East, West, North, and South. The central headquarters ofce incurs expenses of $6,000,000 regardless of the number of locations. This is allocated evenly across the locations. Below is the company's most recent income statement, which reects this overhead, as well as sales revenue and the variable costs of wages, salaries, and other operational expenses. The company is well managed, so that the figures given represent optimal performance of each division given the circumstances, which are not expected to change in future. Income Statement (in thousands) m Sales Revenue Wages and Salaries Operational Expenses Allocated Overhead Net contribution to prot $2,200) $2,900 $4,200 $175 $4,725 Which region or regions should this company leave? Eliminating a region or regions will not affect the revenue or variable cost of the remaining region(s). Explain your reasoning carefully and support your reasoning with evidence from the income statement. 6. Flute Lessons (6 points) Susan teaches beginning private ute lessons after her regular workday to elementary band students. She is the band teacher at several schools and has an excellent reputation in the community. She has estimated the demand for her ute lessons based on experimenting with her pricing. Her dollar rate per 30-minute lesson (P) and her number of lessons per month (Q) yield the following demand curve estimate: Demand: P = 100 0.4*Q Her total xed cost (studio rental per month) is 500 (in dollars) Her total variable cost (including the opportunity cost of her time) is 0.1 *Q2 a. (3 points) How many lessons should she give per month to maximize her prots from this side job? What price should she charge? What are her resulting prots per month? b. (3 points) If her studio fee increases, should she raise or lower her price, or keep it the same? Explain using marginal reasoning if possible. You need to Show all your work for fut! credit. If you use Excel, then you need to submit your entire Excel le for full credit