Cesar Rego Computers, a Mississippi chain of computerhardware and software retail outlets, supplies both educationaland commercial customers with memory and storagedevices. It currently faces the following ordering decision relatingto purchases of very high-density disks:D = 36,000 diskss = $25I = 20%Purchase price = $0.85Discount price = $0.82Quantity needed to qualify for the discount = 6,000 disksShould the discount be taken?

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.