Question number 33. Show work for all parts including how you got the answers.

Pnoo e kept and updated. All 10 branches should be able to exchange infor- mation in real time to maximize the potential markets on both continents. HeadHunter Figure 5.9) for each software package alternative Hands-On Activities 33. Honest Abe and Cars R Us are two fiercely com- day, the company sets the price for the next day at the competitor's price minus one percent. petitive car dealerships. Recently, both started to sell Sniper Hybrid, a new model from Green Motors. Dealers' cost of the car is $19,600. Green Motors pays a dealership $300 for each car sold, and the dealership also keeps whatever markup it adds to the cost. Both dealers start selling the car at the price of $20,600. Each dealership decided to stop selling the car as soon as it sells a car at a loss instead of a profit. Using a spreadsheet application, enter the initial numbers and build a model that will help you answer the following questions: a. Which dealer will stop selling the car first? b. How many days after it starts to sell the car will Immediately after the two dealerships started to offer the car, each decided to lower the price until the other dealership stopped selling the car. However, their price reduction policies differed Honest Abe's policy is as follows: at the end of each day, the company sets the price for the next day at the competitor's price minus $50. Cars R Us's policy is the following: at the end of each this dealer stop selling it? on the first day it loses money on this car? to $25, how will this change the results? c. How much money will this dealer lose per car d. If the Honest Abe changes his price reduction 2 178 Information Technology