AC3200 Profit Maximising Q1. Twinkle makes jewellery with Diamond department cutting and shaping the jewels and Tiffany department mounting the jewels on golden chains and selling them to customers. The following information relates to the two departments: Selling Price (per unit) Sales volume (per annum) Jewel cost (per unit) Direct Labour (per unit) Production overheads (per unit) Fixed Costs (per annum) Diamond Department 1000 500 300 1 800 000 Tiffany Department 3.000 8.000 1 800 (TP from Diamond department) 400 200 2 100 000 The firm has found through marketing that for every 1 increase in the sales price the demand falls by 4 units. 1. Work out the maximum price, the profit maximising demand and profit maximising price. Q2 (Q4M19). Melania Tamper runs a marketing firm called Tamp Towers limited, based in Chester. Melania needs some financial advice in terms of her pricing and profit maximising strategies. Currently Melania charges an average price of 2 000 for carrying out marketing consulting work. The average (marginal) cost for this work is 1 100. The current demand level is 50 contracts per annum. Melania has also worked out that for every 100 increase in her sales price the demand level falls by 5 contracts. Currently the fixed costs for the vear amount to 20.000 MacBook Pro B I U AED Foc