Lead Ltd has one product and sells this product at 32 at an annual demand of 100,000 units. Recent market research has shown them that each increase in price of 4.00 would result in a decrease in demand of 10,000 units. Conversely, each decrease in price of 4.00 would result in an increase in demand of 10,000 units. The company has variable costs per unit of 22 and fixed costs for the year of 500,000. 4. What is the optimal level of output at which profit would be maximised a) 62,500 b) 125,000 c) 100,000 d) 117,500 5. What is the optimum selling price at which the product should be sold in order to maximise profitability a) 32 b) 20 c) 47 d) 22 6. If the variable cost increases to 25, what is the optimal output level required to maximise profitability a) 117,500 b) 58,750 c) 105,000 d) 93,750