Review the panoptos and PowerPoint so that you can explain the contribution margin (CM) method.Using the spreadsheet template and CM method, find and post the optimal weekday and weekend prices for November. Choose one of the questions below and post a response to it.

• How do we know that the prices that maximize CM also maximize profits?
• How does the CM method illustrate the principle of operating where MC=MR?
• Explain how the profit-maximizing price occurs in the elastic range, where revenues are decreasing with price increases.
• How does the CM spreadsheet make our search for optimal prices more efficient?
• When Universal charges the optimal prices for Nov and Dec, what are the capacity utilization rates? Why won't reducing prices to rent more cars, increase Universal's profits?