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Demand = 456000-26500p where p represents the average check amount. What would the influence to your profits be if your price structure is changed therefore that the average check value either increases or decreases from the proposed strategy? Try a range of average check values from $ 1 to $20 calculate the corresponding demand and find the revenues, costs, profits various prices. Explain what is the best price to charge? Explain what will the breakeven be at the optimal price structure?
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