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uestion No.5 [06 marks] he Santa Fe Cookie Factory is considering an expansion of its retail pinon cookie business to her cities. The firm's owners lack the funds needed to undertake the expansion on their own. hey are considering a franchise arrangement for the new outlets. The company incurs variable sts of $6 for each pound of cookies sold. The fixed costs of operating a typical retail outlet are timated to be $300,000 per year. The demand function facing each retail outlet is estimated to P = $50 - 0. 001Q Where P is the price per pound of cookies and Q is the number of pounds of cookies sold. ) What price, output, total revenue, total cost, and total profit level will each profit- maximizing franchise experience? ) Assuming that the parent company charges each franchise a fee equal to 5 percent of total revenues, recompute the values in part (a) above