The marketing department of Johnny$$ Rockabilly's record company has determined that the demand for his latest CD is given in the table at$$ right.

Price

Quantity

$$$$26$

$0$

$$$$24$

$20,000$

$$$$22$

$40,000$

$$$$20$

$60,000$

$$$$18$

$80,000$

$$$$16$

$100,000$

$$$$14$

$120,000$

The record$$ company's costs consist of a$$ $$240,000$ fixed cost of recording the$$ CD$,$ an$$ $$8$ per CD variable cost of producing and distributing the$$ CD$,$ plus the cost of paying Johnny for his creative talent. The company is considering two plans for paying Johnny.

$$

Plan$1$: Johnny receives a zero fixed recording fee and a$$ $$4$ per CD royalty for each CD that is$$ sold.

Plan$2$: Johnny receives a$$ $$400,000$ fixed recording fee and zero royalty per CD$$ sold.

Under either$$ plan, the record company will choose the price of$$ Johnny's CD so as to maximize its$($the record$$ company's$)$ profit. The record$$ company's profit is the revenues minus$$ costs, where the costs include the costs of$$ production, distribution, and the payment made to$$ Johnny.

$$Johnny$\text{'}$s payment will be$\_\_\_\_\_$ under plan $2$ as compared with plan$1,$ and the record$$ company's profit will be$\_\_\_\_\_$under plan $2$ as compared with plan $1.$

Part $2$

A$.$

$$$$140,000$ higher; the same

B$.$

$$$$120,000$ higher;$$ $$80,000$ lower

C$.$

$$$$80,000$ higher;$$ $$80,000$ higher

D$.$

$$$$40,000$ higher;$$ $$100,000$ lower

E$.$

$$$$140,000$ higher;$$ $$60,000$ higher