For Problem Set 4, you have two (2) problems to solve on pricing strategies. For help solving the problems, please reference your textbook.

Use Excel to find optimal solutions to the questions and show your work on how you came up with the answers by clearly typing the formulas in the cells. Submit your answers along with the data set you used in a single Excel file (use one Excel file with multiple worksheets and answer the second question in a separate worksheet).

The organization you work for has conducted a survey of its customers and has identified two customer segments, one is willing to pay a higher price for a customized product and the other one is more price sensitive and is willing to pay for a standard product.

1) Demand curve for the customers willing to pay higher price is d1 = A1 B1*p1.

2) Demand curve for the more price-sensitive customers is d2 =

A1 - B2*p2.

3) Assume the production cost for each product (standard and -customized) is c = $C per unit. (Values of A1, B1, B2, and C are provided in the below data set.)

A1	10550
B1	27
B2	44
C	151