me understand how to respond to the CEO of this fake company. Have to solve the equations in the memo. Then explain in terms of dollars on why his idea is good if it creates value. Please read below for more info and equation. Secure Tablet Supply Corp. First in Technology, First in Profits M E M O R A N D U M To: Strategic Review Team From: Bon Sanders Subject: Supply Chain Strategy As you know we supply retailers with everything from phones and tablets, to phablets. In regards to tablets, we are currently competing with only one serious rival, TechFirst Inc. Thanks to our ingenious engineers and continued investments in R&D we have developed a tablet for secure email, games and web surfing among other applications. Unfortunately, this has not gone unnoticed by our rival TechFirst; they have just announced they will be releasing a very similar concept. However, since we were a first-mover in developing the new secure email tablet, we will be able to bring it to the market before our rival does. Moreover, we are out-competing our rival in terms of marginal costs. Our accounting department has informed me that our monthly costs for the secure business tablets are roughly C(Q1) = 2,400 + 4Q1, while those of the competitor are C(Q2) = 1,500 + 5Q2. According to our sales department we are both facing the following inverse monthly market demand curve: P = 1,080 - 3Q. Since we have enough capacity to supply the entire market this year, we have approached TechFirst in hopes of purchasing their concept rights for this initial year and they have agreed to sell it for a monthly price of $50,000, which would again make us the sole supplier of the secure tablets in the relevant time period. Please advise as to whether you think purchasing their concept for this amount is a good investment based on whether it would help us create value for our firm. Thanks CEO dude