Dear Valley has grown from a roadside stand to an organic produce market featuring a wide variety of locally grown organic produce that includes their own fruit as well as products from the areas finest growers. Prepacked apples, though, are still the most profitable product. The production and labor costs on these prepacked apples are 84 cents/lb. The average price for apples across their market is $1.49 and so they set their price at that level. Knowing that their customers like to pick their own apples, they want to leave some of their 20,000 lbs of apples on trees for customers to pick. Production costs are reduced in this case to 42 cents/lb but they lose about 20% of the apples. If they were to obtain the same markup based on cost for pick your own apples, what would be the price? Ellen Jennings, the owner realizes that pick your own apples could be used as a promotion to get more people to come to the market and buy even more items. If she sets the price of the apples to just 60 cents/lb, make a recommendation on how much of the 20,000 lbs of apples should be set aside for pick your own. Remember that 20% of the apples would be lost in this case by spoilage (i.e., customers knocking the apples down while picking them). Consider how much revenue they would need to make from sale of other products to make this a successful promotional strategy.