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Egerton University *

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Accounting

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Nov 24, 2024

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docx

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Surname 1 Professor’s Name Student’s Name Course Date Tying as a Bundling Strategy 1. What is the contribution margin at each price for each product? a) Hydration High Price contribution margin is $6 b) Hydration Low Price contribution margin is $5 c) Smoothie High Price contribution margin is $6 d) Smoothie Low Price contribution margin is $1 2. Refer to Problem Set 3 for the data needed to answer the questions below: Hydration Power Drink Satisfying Smoothie Bundle Price Net Profit Early 7.00 5.00 5.00 7.00 Late 6.00 10.00 5.00 11.00 3. a) TR = $190,000 b) TR = $150,000 c) TR = $95,000 d) TR = $35,000 e) TR Group Home = $70,000
Surname 2 f) TR Group Home = $90,000 g) TR Group Home = $160,000 h) TR Group Home = $195,000 4. 4a) TR Bundle = $760,000 4b) TR Bundle = $600,000 4c) TR Bundle = $380,000 4d) TR Bundle = $140,000 5. At what individual price would revenue be maximized for the Certification in Online Counseling? The revenue would be maximized at $190 individual price. The total revenue for 1000 customer would be $190,000. 6. At what individual price would revenue be maximized for the Certification as a Group Home Counselor? The revenue for group home counselor would be maximized at $35 individual price. The total revenue for 1000 customers would be $195,000. 7. What is the maximum revenue for individual pricing? Maximum revenue = $190,000 8. If you applied pure bundling, what would be the maximum revenue?
Surname 3 If pure bundling is applied, the maximum total revenue would be $760,000 at $190 individual price.
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