Q.1. Surgical Systems, Inc., makes a proprietary line of disposable surgical stapling instruments. The company grew rapidly during the 1990s as surgical stapling procedures continued to gain wider hospital acceptance as an alternative to manual suturing. However, price -conscious new millennium. During the past year, Surgical Systems sold 6 million units at a price of $ 14.50, for total revenues of $ 87 million. During the current year, Surgical systems' unit sales have fallen from 6 million units to 3.6 million units following a competitor price cut from $13.95 to $ 10.85 per unit

a. Assuming the same implied arc price elasticity of demand calculated in part B, determine the further price reduction necessary for Surgical systems to fully recover lost sales (i.e. regain.a volume of 6 million units).