Cai Stephens recently opened a mobile dog grooming business named Waggin' Clean in the Dallas suburb of Frisco, TX. As a relatively lew competitor in the market, Kai knows that he must find more customers quickly if his business is going to survive. There are many ompetitors in the Dallas market with service prices ranging between $40 and $100. To position his business competitively, Kai has lecided to charge $60 for his dog grooming services. Kai's business has fixed monthly expenses of $2000 which covers his salary Ind the payment on his mobile grooming van. Additionally, Kai has variable expenses of $20 per service for his supplies, variable labor expenses, and gas. :ven with his competitive price, Kai's business is not reaching its potential. Kai has the ability to service 8 canine clients per day, 6 days week, which results in approximately 192 potential dog services per month. Unfortunately, Kai is only booking 4 grooming ippointments on average each day. Kai knows he needs to do some marketing to increase his client base. To increase his bookings, (ai is deciding between two different promotional marketing campaigns. Cai is deciding between running an advertisement in a local Dallas magazine and creating a $10 off coupon direct mail campaign. The nagazine ad Kai is considering has an advertising cost of $1000 while the advertising cost for the direct mailing is $500. Based on his esearch, Kai believes that the magazine advertisement would result in a 25 percent increase in customers (120 customers per month) vhile the direct mail coupon would result in a 55 percent increase in customers (150 customers per month). he goal of this activity is to understand the profit equation and the relationship between sales, revenue, and costs. Keep in mind that: Profit=TotalRevenueTotalCosts.TotalRevenue(TR)=Price(P)QuantitySold(Q). Refer to the formulas above and the spreadsheet below to help answer the questions that follow. The spreadsheet fields highlighted in ellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns E to G. Start by entering the initial values into columns B to D. Then review the questions below and adjust the values in columns B to D to determine the correct answers. eefer to the formulas above and the spreadsheet below to help answer the questions that follow. The spreadsheet fields highlighted in ellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in olumns E to G. Start by entering the initial values into columns B to D. Then review the questions below and adjust the values in olumns B to D to determine the correct answers