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You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $10,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client's demand for your software is ???? = 100 - 0.1?? and that it would cost you $500 per unit to install and maintain software at this client's site.
a. If the company decided to charge $900 for the first 10 units and $700 for each additional unit of software purchased, how much profit will the company earn?
b. What do you think is the pricing strategy applicable in this scenario? Do you think this is an effective strategy in selling the statistical software package to maximize your profits? Why or why not? Discuss your answer
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