You are running Questrom Bakeries and need to decide on the price to sell cookies and the quantity of cookies to produce.During week 7 you solved for the right price, quantity and profits by using the following weekly demand curve: Q = 8.5 - 0.05 * P, where Q is the number of cartons produced per week.You also used the following weekly cost curve: C = 100 + 38Q.You want to run Questrom Bakeries as a profit maximizer.

Just before posting prices and telling the production department what to bake the chief financial officer comes running into your office with bad news.Variable costs just increased by $12 per carton.his means the cost curve is now C = 100 + 50 Q.After this bad news... QUESTION 1: What is the right price to charge each week? Round to the nearest integer.If the answer is 58.2, enter 58. QUESTION 2: What is the right quantity of cartons to bake each week? Round to the nearest integer. If the answer is 58.2, enter 58. QUESTION3: What are your expected profits from running the bakery each week? Round to 2 decimals. If the answer is 122.56, enter 122.56. QUESTION 4

Compared to the results using the original cost curve (C = 100 + 38Q), the increase in variable costs means the bakery manager should.Note: Donotround quantity. For example, if you got Q=3.3, use 3.3.

A-Leave both price and quantity alone

B-Not change their price, but should change their quantity

C-Change their price, but not change their quantity

D- Change both price and quantity