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Problem 3 (12 pts) TrekBike, a bicycle manufacturer has identified two customer segments, one that prefers a customized bicycle and is willing to pay a

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Problem 3 (12 pts) TrekBike, a bicycle manufacturer has identified two customer segments, one that prefers a customized bicycle and is willing to pay a higher price and another that is interested in buying a standard bike and is more price sensitive. Demand from the customized segment is di = 20,000- 10pl, and demand from the price sensitive segment is d2 = 40,000-30p2, (dl and pl are demand and price for customized and d2 and p2 are demand and price for the price sensitive segment). A customized bike costs $400 to manufacture whereas a standard bike costs $250 to make. Total current capacity is limited to 75,000 bikes. Company wishes to determine the selling price of the bikes that will maximize its total profit. Formulate the problem to maximize the total profit. No need to solve in Excel

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