Do you have any concerns about using accounting data

Reference no: EM133344008

Question: Previously you determined the revenue-maximizing price based on your demand equation. Is maximizing revenue the most appropriate objective for A+ Rental Cars? Explain. If not, recommend an alternative approach and justify your stance.

The accounting department at the corporate office has provided you with some historical cost data. Economy rentals cost $17.10 per day while luxury vehicles cost $25.12 per day. Regardless of vehicle type, a rental contract requires $8.90 for reconditioning. Additional vehicles can be delivered from the regional hub at a cost of $35/vehicle, on top of the costs above. Do you have any concerns about using this accounting data to set prices? Hint: Consider the difference between average and marginal cost

Reference no: EM133344008

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