Your company has recently developed a revolutionary new product. Due to the inherent

uncertainty surrounding new products, the product$$s demand and production costs are unknown.

Demand is estimated to vary between $1,000$ and $10,000$ units, following a uniform distribution.

The marketing strategy is to set the product price at $$395$ per unit unless demand exceeds $8,000$

units, in which case the price will be set at $$495$ per unit. $($You questioned whether such a change

in price would influence the demand quantity but were told to assume that is not the case; given

the uncertainty of the new product and organizational politics, you decided to accept this

assumption.