TotsPoses, Incorporated, a profit-maximizing business, is the only photography business in town that specializes in portraits of small children, George, who owns and runs TotsPoses, expects to encounter an average of eight customers per day, each with a reservation price shown in the following table. Assume George has no fixed costs, and his cost of producing each portrait is $12. Reservation price ($ per photo) Customer 50 46 42 38 34 6. 30 26 8 22 a. Suppose George is permitted to charge two prices. He knows that customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them. At what level should George set the list price of a portrait? At what level should he set the discount price? How many photo portraits will he sell at each price? List price of a portrait: $ 34 Number of portraits to be sold at the list price: 5 portraits

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