A General Motors executive is considering how to price the 2013 Chevy Volt electric car in order to maximize profits for the company. Manufacturing each Volt
involves $9500 of materials $12500 of labor $3800 of shipping and $4000 of other supplies. The Detroit facility where the Volt is manufactured has $12.5
milliion of fixed costs. The marketing department says that adding a Bose sound system would boost demand but it would cost an additional $750 per unit. The quantity demaded at each per unit price is as follows:
Price Quantity Demanded (no Bose) Quantity Demanded (With Bose)
$29000 14000 16800
$30000 11200 13440
$31000 8960 10752
$32000 7168 8602
$33000 5734 6881
$34000 4588 5505
$35000 3670 4404
$36000 2936 3523
$37000 2349 2819
$38000 1879 2255
$39000 1503 1804
$40000 1203 1443 What profit maximizing strategy should she choose?