The Links Company sells its golf clubs at golf outlet stores throughout the United States. The company knows that demand for its clubs varies considerably with price. In fact, the price has varied over the past 12 months, and the demand at each price level has been observed. For example, during month 12, when the price was $390, 6800 sets of clubs were sold. The company wants to estimate the relationship between demand and price and then use this estimated relationship to answer the following questions:

1.As the value for unit cost of production increases, does profit become more sensitive or less sensitive to changes in unit cost?

2. Calculate the mean absolute percentage errors for power and exponential curves. Which of the three models best fits the data: linear, power, or exponential?

3. What is the best price and maximum profit predicted by the power model assuming the unit cost of product is $250?