You need to start by estimating the demand function. (chapter 3)You can find MR from the function.( chapter 8)In order to consider all possible prices (not only those on the excel spreadsheet), you need to use Regression Analysis and find the (optimal) price and quantity by setting MR=MC. Make sure to calculate the profit-maximizing price, changes in profits, and changes in revenues.

To: Pricing Manager, Tri-State Region From: Regional Vice President, Tri-State Region Re: Revenue from EPIX As you are aware, we recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our contribution margin from our subscriber base. Currently we have 15,059 subscribers, generating monthly revenue of $146,823. In an earlier study, our marketing department generated data on sales quantities at various price levels. In addition, we have included the licensing cost as well as regional expenses. Please provide a recommendation of the profit-maximizing price, and how much our profits will increase if we adjust price to the recommended level. Also, please note whether this will impact our revenue. Attachment: Epix.xis Estimates of market penetration in the Tri-State Region based on different price levels. License fees represent the fees that we must pay to Epbx for the rights to re-transmit their channels. Fees are based on the number of subscribers