Please analyze our current pricing scheme on our Tahoe in the North region and give me a recommendation on how we can maximize our revenue. I am interested in maximizing our revenue in order to be able to finance the upgrading of our dealership intranet.

Our sales department has estimated the followingsemiannual demand Q = 25,000 - 1.25PTAH+ 1.5PSEQ.

Notice that we have included the impact that the Sequoia has on our Tahoe demand as it currently is our principal rival in the geographic region.

We are currently charging $42,500 for our base Tahoe and we notice that Toyota is currently charging $50,000 for its base Sequoia. Let me know what price you would recommend to maximize our revenue as I am hoping there is room to bring our price point more in line with the Sequoia.