Help! Very confused, work in photo attached with all information included! What's blocked off is personal information that has nothing to do with the question. Thanks!

4. Suppose you come home from having earned your degree at Your parents own a local chain of fitness clubs that have a great reputation. Your father uses cost-plus pricing, and at the moment he is charging $200 for an annual membership, and is currently selling 800 memberships. Your parents are quite happy with their current markup above average costs You suspect that perhaps they could be doing better and be more profitable. As you just took ECON 380, you are well equipped to assess this! After consulting with the club's manager, you learn that the cost function for annual memberships is given by c(Q)=1000+200+(1/20)Q2. Further, they tell you that the own price elasticity of demand is approximately -2.5 Are your parents choosing a membership price that is maximizing profit? If not, what would you suggest - increase the price or reduce the price? Explain