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Phil Pfeifer owns a business refurbishing Army Surplus calculators. He has a contract to buy the calculators from government sources and could purchase up to

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Phil Pfeifer owns a business refurbishing Army Surplus calculators. He has a contract to buy the calculators from government sources and could purchase up to 4,410 a month. His bid of $4.73 per calculator had won the contract to purchase the surplus calculators. He invested $42,400 in an automated engraving machine and started selling personalized calculators through a network of army surplus stores and VFW posts. Pricing was a problem, however. First, he had to consider that, on average, his resellers charged 42% margins and were content to sell at his recommended retail prices as long as they received their margins. Second, he thought it cost him $0.96 in labor and materials to engrave customized messages. For several months he sold an average of 1,260 calculators per month at a retail selling price of $35 per customized calculator. His wife suggested he could watch more lacrosse if he charged higher prices and sold fewer calculators. Phil raised the price to $44 and saw the number of calculators sold drop to 694. (20 points in total, 4 points each} Assuming the price-quantity demand function is linear, what is the slope? answer looks like +fxx.xx What is the Maximum \\Mllingness to Buy (MWB) if demand it linear? answer should look like $xx.xx What is the Maximum Reservation Price (MRP) if demand it linear? answer look like $xx.xx Assuming a linear demand function, what is the Optimal Price for the calculators? answer should look like $xx.xx How many calculators per month would Ankush expect to sell at the optimal price? answer looks like XXXX

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