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Figure. Graph of profits versus price charged 150 125 100 75 50 25 Profit Level 0 -25 0 1 2 3 4 5 6 7 8 9 0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 -50 -75 -100 -125 -150 Price ChargedFigure. Profits, marginal revenue, marginal cost Un NW Dollars O 0 5 -2 -3 -4 Units Sold -Profit = Total Revenue - Total Cost Change in Revenue -. Change in CostFigure. Total revenue and total costs versus units sold 12 10 Dollars ONDOO 0 1 2 3 4 5 6 7 8 Units Sold -. - Total Revenue -Total CostTable. Model of profits with price as choice variable. Choice Variables Price 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Equation Parameters Cost equation intercept 0.00 0.00 0,00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 Cost equation slope 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Demand equation intercept 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Demand equation slope -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 Consequence Variables Quantity 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 Revenue 0.00 45.00 80.00 105.00 120.00 125.00 120.00 105.00 80.00 45.00 Total Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Objective Variables Profit 0.00 45.00 80.00 105.00 120.00 125.00 120.00 105.00 80.00 45.00Figure. Spreadsheet model of beverage choice (PF, SS) that maximize profits showm in the objective cell. PF SS Choice Var 25 25 Obj Coef 8 6 350