Summer plc has recently undertaken extensive market research in an attempt to establish how demand changes for one of its products when the company changes the price of the product. The market research found that demand will increase / decrease by 100,000 units for each drop / rise in selling price of 1. The result is a maximum sales quantity of 300,000 units at a selling price of zero, or no sales at a selling price of 3. You are the Management Accountant for Summer plc. The Finance Director is keen for the company to earn the maximum wealth possible for the shareholders and has asked you to calculate the optimal pricing and output position for the product. Your analysis so far has found that the total cost at an output level of 100.000 units was 180,000 and the total cost at an output level of 250,000 units was 270,000. Required a) Calculate the variable costs per unit and total fixed costs. Construct the total costs function formula b) Using differential calculus, calculate the optimal output level and the selling price required at that level to maximise profit. c) Calculate the total revenue, total costs and profit at the output level that gives the optimal position. d) Discuss briefly the problems inherent with this approach to setting prices and output levels. Maximum