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A lawn mower manufacturer encounters the following relationship between price and demand for small garden lawn mowers in the market: Price = 500 0.2 x Demand. The total fixed cost of manufacturing small lawn mowers is 5 100,000, while the company faces variable costs of$ 150 per unit. (a.) What is the revenue maximization level of production? (1).) What is the profit maximization level of production? (a) What is the optimal value of demand that maximize profit? (:1) What is the price per unit at this level of demand? (9.) Create a graphical display of optimal demand and breakeven values. Hint: A more specific value can be obtained by changing the Demand Start point and the Demand Increment value. Reference: MOD D P Q R BES 104 (Engineering Economics): Spreadsheet Exercise #1: Optimal Demand When Demand Is a Function of Price Fixed Cost Per Month (Dollar) 73,000 Demand Start 0 Variable Cost Per Unit (Dollar) 83 Demand Increment 250 a (Dollar) 180 b (Dollar) 0.02 PRICE PER UNIT TOTAL REVENUES TOTAL EXPENSES PROFIT 700,000 MONTHLY DEMAND (DOLLAR) (DOLLAR) (DOLLAR [DOLLAR) 0 180 73,000 73,000 250 175 43,750 93,750 50,000 600,DOO 500 170 85,000 114,500 -29,500 750 165 123,750 135,250 -11,500 500,000 1000 160 160,000 156,000 4,000 1250 155 193,750 176,750 17,000 197,500 27,500 600,000 1500 150 225,000 1750 145 253,750 218,250 35,500 2000 140 280,000 239,000 41,000 300,000 259,750 44,000 Profit 2250 135 303,750 2500 130 325,000 280,500 44.500 200,000 -Total Expenses 2750 125 343,750 301,250 42,500 Cash Flow $ Total Revenues 3000 120 360,000 322,000 38,000 3250 115 373,750 342,750 31,000 100,000 3500 110 385,000 363,500 21,500 3750 105 393,750 384,250 9,500 4000 100 400,000 405,000 -5,000 1250 1500 1750 2000 2250 2500 2750 3000 3250 3500 3750 $250 3500 $750 4250 95 403,750 425,750 -22,000 405,000 446,500 -100,000 4500 90 41,500 4750 85 403,750 467,250 63,500 5000 80 400,000 488,000 80,000 -200,000 5250 75 393,750 508,750 -115,000 5500 70 385,000 529,500 -144,500 -900,000 5750 65 373,750 550,250 -176,500 6000 60 360,000 571,000 -211,000 Demand Graphical display of optimal demand and breakeven values