How to maintain software at the clients site

Reference no: EM13199568

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 Q^d = 100 - 0.1P and that it would cost you $500 per unit to install and maintain software at this client's site. The CEO of your company recently asked you to construct a report that compares

(1) the profit that results from charging this client a single per-unit price with

(2) the profit that results from charging $900 for the first 10 units and $700 for each additional unit of software purchased. Construct this report, including in it a recommendation that would result in even higher profits.

Reference no: EM13199568

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