JBC Inc. currently sells a product for $1,100 which results in demand being 2,000 units. Management is considering increasing the price to $1,150 however a price increase will result in a decrease in demand by 200 units. The product has the following cost structure per unit: Direct material $38.00 Direct labour $12.00 Direct expenses $25.00 Variable overheads $15.00 Fixed overheads $50.00 Variable selling expense $10.00 Fixed selling expenses $75.00 Management wants to know is optimal production quantity and its maximum profits. Required: (a) Determine the price equation. (b) Determine the optimal price and quantity. (c) Determine the optimal profits.