Problem 3 (15 points] Purple Medical Devices [PM D] is a health-care technology startup founded by Northwestern U faculty. Its primary product is the Purple Early Warning System [PEWS). This device takes the input from the numerous sensors attached to a patient and integrates the disparate sources of information to detect the likelihood of an imminent cardiac event and alert caregivers. PMD sells PEWS to hospitals, doctors and home health care providers; it has numerous patents which insulate it from competition. A PEWS unit costs $100 to manufacture. A Kellogg student team estimated the demand for PEWS to roughly approximate the function P = $500 310 Q, and recommended that PEWS be priced at $300 per unit. At that $300 price, PMD forecasts sales of 100,000 PEWS units per year. a. Check the work of the Kellogg student team. Given the estimated demand, is PEWS priced correctly? Explain. [5 points]