Question: Refer to the data given in the preceding two exercises. 1. Prepare a table of Serendipity Sounds revenue, cost, and profit relationships. For guidance refer

Refer to the data given in the preceding two exercises.

1. Prepare a table of Serendipity Sound’s revenue, cost, and profit relationships. For guidance refer to panel C of Exhibit 15–3.

2. Draw a graph similar to panel A of Exhibit 15–3 reflecting the data tabulated in requirement (1).

3. To narrow down the pricing decision, the Minneapolis Division’s sales manager has decided to price the home theater sound system at one of the following prices: $400, $425, $450, or $500.

Which price do you recommend? Why?

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