Home Insert Draw Page Layout Formulas Data Review X Calibri (Body) 11 Paste BIU v a. Av B2 fx c D F G B Publisher H 1 Bookstore Wholesale Price Shipping and Handling Cost 2 Raw- material Cost Constant Slope MOSSBER Par A Part B Part + SPS-102 Calibri (Body) 11 A A 11 Iuli 191 Paste B I U 7 a Av E7 XV fx B C D E F G H Publisher Bookstore Wholesale Price Shipping and Handling Cost 2 Raw material Cost Constant 3 Slope 5 B 10 11 12 13 15 10 20 2 Part A Part B Part SPS-102 Excel File Edit View Insert Format Tools De AutoSave Home Insert Draw Page Layout Formulas Data X Calibri (Body) 11 ' Paste BIU v a. Av IM E8 1 x v fe B c C D E F G H 12 3 5 6 8 15 16 18 19 20 23 24 25 2 Pana Part B Question 6. (Bonus - You should answer one of Question 6 or Question 7) Suppose a new novel will begin to be sold at a local bookstore next month. The publisher charges the bookstore a price of $11.00 per copy. For each copy purchased by the bookstore, the publlsher incurs raw material costs of $3.75, and the bookstore Incurs shipping and handling costs of $1.20. The maximum market demand for the book is estimated to be 120. Also, assume that the price elasticity of demand for the book is 1. Part A. (10 points) What selling price will the bookstore choose based on her own profit? Conduct your analysis in the sheet named "Part A of the Excel file "midterm 2 question 6.xlsx Part B. (10 points) Suppose a single firm owns both the publisher and the bookstore. What selling price will it choose to maximize its profit? Conduct your analysis in the sheet named "Part of the Excel file "midterm 2 question 6.xlsx + Part C (10 points) What is the decentralization peralty? Conduct your analysis in the sheet named "Part of the Excel file "midterm 2 question 6.xlsx After you have completed all the parts 0.0.A.), upload the file "midterm 2 question 6.xlsx under "midterm 2 question in the folder Midterm ll in SUCourse Home Insert Draw Page Layout Formulas Data Review X Calibri (Body) 11 Paste BIU v a. Av B2 fx c D F G B Publisher H 1 Bookstore Wholesale Price Shipping and Handling Cost 2 Raw- material Cost Constant Slope MOSSBER Par A Part B Part + SPS-102 Calibri (Body) 11 A A 11 Iuli 191 Paste B I U 7 a Av E7 XV fx B C D E F G H Publisher Bookstore Wholesale Price Shipping and Handling Cost 2 Raw material Cost Constant 3 Slope 5 B 10 11 12 13 15 10 20 2 Part A Part B Part SPS-102 Excel File Edit View Insert Format Tools De AutoSave Home Insert Draw Page Layout Formulas Data X Calibri (Body) 11 ' Paste BIU v a. Av IM E8 1 x v fe B c C D E F G H 12 3 5 6 8 15 16 18 19 20 23 24 25 2 Pana Part B Question 6. (Bonus - You should answer one of Question 6 or Question 7) Suppose a new novel will begin to be sold at a local bookstore next month. The publisher charges the bookstore a price of $11.00 per copy. For each copy purchased by the bookstore, the publlsher incurs raw material costs of $3.75, and the bookstore Incurs shipping and handling costs of $1.20. The maximum market demand for the book is estimated to be 120. Also, assume that the price elasticity of demand for the book is 1. Part A. (10 points) What selling price will the bookstore choose based on her own profit? Conduct your analysis in the sheet named "Part A of the Excel file "midterm 2 question 6.xlsx Part B. (10 points) Suppose a single firm owns both the publisher and the bookstore. What selling price will it choose to maximize its profit? Conduct your analysis in the sheet named "Part of the Excel file "midterm 2 question 6.xlsx + Part C (10 points) What is the decentralization peralty? Conduct your analysis in the sheet named "Part of the Excel file "midterm 2 question 6.xlsx After you have completed all the parts 0.0.A.), upload the file "midterm 2 question 6.xlsx under "midterm 2 question in the folder Midterm ll in SUCourse