Problem 8-4 Pearl City, a pet product superstore, is considering pricing a new Pearl City-labeled dog food. The company will buy the premium dog food from a company in Indiana that packs the product with a Pearl City label. Pearl City pays $9 for a 50-pound bag delivered to its store. The company also sells Royal Dog Food (under the Royal Dog Food label), which it purchases for $10 per 50- pound bag and sells for $20.99. The company currently sells 25,880 bags of Royal Dog Food per month, but that is expected to change when the Pearl City brand is introduced. The company will continue to price the Royal Dog Food brand at $20.99. The quantity of Pearl City and the quantity of Royal Dog Food that will be sold at various prices for Royal are estimated as: Price Quantity Quantity Pearl City Pearl City Royal $ 9.99 35,610 11,700 $ 10.99 35,470 12,300 $ 11.9934,830 12,500 $ 12.99 33,800 12,800 $ 13.99 30,680 13,900 $14.99 26,330 15,500 $15.99 16,150 15,900 $ 16.99 11,230 20,000 $17.995,600 21,500 For example, if Pearl City is priced at $9.99,the company will sell 35,610 bags of Pearl City and 11,700 bags of Royal at $20.99. If the company prices Pearl City at $17.99, it will sell 5,600 bags of Pearl City and 21,500 bags of Royal at $20.99. This is 4,380 fewer bags of Royal than is currently being sold. Calculate the profit-maximizing price for the Pearl City brand, taking into account the effect of the sales of Pearl City on sales of the Royal Dog Food brand. (Round answers to 2 decimal places, e.g. 15.25. Enter loss using either a negative sign preceding the number e.g.-15.25 or parentheses e.g. (15.25).) Profit/(Loss) Price of Pearl City $9.99 $ 10.99 11.99 Price of Royal $20.99 20.99 20.99 20.99 20.99 20.99 20.99 12.99 13.99 14.99 15.99 16.99 20.99 17.99 20.99 N/A 20.99 Profit-maximizing prices LINK TO TEXT At the price calculated in part a, what is the incremental profit over the profit earned before the introduction of the Pearl City-branded dog food? (Round answer to 2 decimal places, e.g. 15.25.) Incremental profit Click if you would like to Show Work for this question: Open Show Work