Atchley Office Supplies MFG. (AOSMfg.) manufactures and distributes filing cabinets. Their break-even price for these filing cabinets is $150/unit, but knows that it must sell at a minimum price of $175/unit in order to meet leaderships growth expectations. AOSMfg. sets their sales price at $225/unit and enters the marketplace. Jones Law Firm (JLF) is a small law firm that is just getting off the ground. They need at least 10 of these filing cabinets for record storage. JLF has been shopping for these filing cabinets to find the best deal. In order to stay within their budget constraints, they know that theyll need to stay under $240/unit. All the local retailors have these filing cabinets priced at $250/unit and none of them will provide any type of price break for their large order. This being said they decided to reach out to AOSMfg. directly. AOSMfg. is happy to accommodate the order and offers them a discounted price of $215/unit since they are buying 10 of them.

A. For the above scenario, show the Consumer and Producers Surplus graphically.

B. For the above scenario, calculate the dollar amount of consumer surplus for Jones Law Firm as well as the Producer Surplus for Atchley Office Supplies MFG