Table 1: Pepita Disco Performance, 2011 (UYU in millions)

Units sold	100 million units
Revenue	200
Variable costs
Materials	30
Direct labor(manufacturing,sales)	40
Opearational costs(manufacturing,inventory,delivery)	30
Other variable costs	20
Margin on Sales	80
Fixed Costs
Marketing and advertising	10
Research and development	10
Other fixed costs(e.g head office)	40
Net margin	20

a.). Motivate its manufacturing staff and salespeople by paying them 10% more and, as a result, unit sales increased 10%?

a i.) Raise its price 10% with an elasticity of 1.7?

a ii.)Lower its price 10% with an elasticity of 1.7?