Suppose that Bobcat currently sells farm equipment (track loaders) to a farm company and John Deere is its main competitor. Bobcat's track loader saves the client 50 hours of labor over its lifetime as compared to the John Deere's product. 50 hours of labor is equivalent to $ 5000 for the client. John Deere's quoted product price is $ 45,000. Both John Deere's and Bobcat's cost of manufacturing a track loader is $ 40,000. Client will buy one track loader and the client's profit using the track loader is going to be $60,000.

(a.) What should be Bobcat's pricing that leads to maximization of profit?

(b.) Suppose the sales rep for Bobcat can price the product at any price above $44,000 but the company evaluates the sales rep on profit generated and not just sales. How should s/he develop the pricing strategy for the client considering that the buyer may buy more in future and John Deere's sales rep may also try to get the deal with the buyer.

Please give me the correct answer with explanation.