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Welcome onboard to Chevy's South Eastern Division. I would like you to analyze our current pricing scheme on the Chevy Tahoe and give me a recommendation on how we can increase our cash flow. Our sales department has estimated the following semiannual demand Q = 25,000 - 1.25PTAH + 1.5PSEQ. Notice that we have included the impact that the Toyota Sequoia has on our Tahoe demand as it currently is our principal rival in the geographic region. We are currently charging $42,500 for our base Tahoe and we notice that Toyota is currently charging $50,000 for its base Sequoia. Let me know what price you would recommend to maximize our cash flow, I am hoping there is room to bring our price point more in line with the Sequoia.
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