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5. Profit Maximization with Demand Curves. Campbell Motors is an auto dealership that specializes in the sale o station wagons and light trucks. Because of its reputation for quality and service, Campbell has a strong position in the regional market, but demand remains somewhat sensitive to price. While evaluating the new models, Campbells marketing consultant has come up with the following demand curves: Truck Demand 5 Wagon Demand 400 - 500 18(Truck Price in thousands) 11 (Wagon Price in thousands) The dealerships unit costs are $20,000 for trucks and $25,000 for wagons. Each truck requires three hours of prep labor, and each wagon requires two hours of prep labor. The current staff can supply 250 hours of labor a. Determine prices at which Campbell Motors can maximize the profit it generates from combined sales of trucks and wagons. b. What is the marginal value of the current staffs labor hours?

Please show formulas in excel

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