Ch11Q12

An analyst for FoodMax estimates that the demand for its "Brand X" potato chips is given by lnQXd=12.483.2lnPX+4.PY+1.4ln.AX Where QX and PX are the respective quantity and pilce of a four-ounce bag of B rand X potato chips, PY is the price of a six-ounce bag sold by its only competitor, and Ax is FoodMax's level of advertising on brand X potato chips. Lastyear, FoodMax sold 8 million bags of Brand X chips and spent $0.37 milion on advertsing its plant lease is $2.4 million (this annual contract includes utilities) and its depreciation charge for capital equipment was $3 milion, payments to employees (all of whom earn annual salaries) wete $0.8 milion. The only othet costs associated with mantracturing and distributing Brand X chips a competitive input markets. Based on this information, what is the profit-maximizing price for a bag of Brand X potato chips? Instructions: Enter your response -rounded to the neatest penny (two decimal places)