A manufacturer produces and sells two products, A and B. The unit variable cost is sh.12 and sh.8 for A and B respectively. A review of selling prices is in progress and it has been estimated that, for each product and increase in the selling price would result in a fall in demand of Sh.500 units per every Sh.1 increase in price and similarly a decrease of Sh.1 in price would result in an increase in demand of 500 units.

The current sales prices and sales demand are:-

Price (Sh.) Demand (Units)

A 30 15,000

B 58 21,000

Required:

Calculate the profit-maximizing price for reach product. (10 marks)