Instructions Please answer the questions below with just numerical answers to each question and a brief outline of how you calculated them. PROBLEM 1: Cats Tiles Cats sells very fancy tiles and has asked you to help out with their pricing. Historically, its factory and market have been in Tucson, but a new market opportunity has materialized in Dallas. Assume the markets are completely separable, i.e. customers in Dallas will not purchase your product in Tucson and customers in Tucson will not resell the product in Dallas. How would you price your product in the two markets if your fixed cost is 5100,0(1), giving you a capacity to produce and sell up to 150,000 tiles? Your variable cost is $5 per tile, and it costs an extra 51 per tile to ship tiles to the Dallas market. How much profit would you make at your suggested optimal prices? Table 1 below gives the price/qua ntity relationships for the two markets: Table 1 PrioefQuantity Relationst Price ($) Dallas Tu cso n Quantity Qua ntity 0 40,000 50,000 35,000 50,000 10 30,000 40,000 15 25,000 30,000 20 20,000 20,000 25 15,000 10,000 30 10,000 0 35 5,000 0 40 O 0 [NOTE: Within each geographic market [Tucson and Dallas), there are no discrete segments. Table ljust gives us points on the prioe response curve probably linear. Please check whether this relationship is linear. Then simple geometric method as explained in our video this week can be used to figure out the optimal prices.]