Ricky company to use, What pricing method would you advise

Ricky company to use

Assignment Help Chemistry

Reference no: EM13548822

The reservation prices (in dollars) of three classes of demanders (classes A, B, and C) for Ricky Parton's (a Latin country-western singer) compact disks are given in the table that follows:

CD1 CD2
A 11 5
B 8 9
C 9 10
What pricing method would you advise Ricky's company to use?

I don't understand the actual answer to the question.
In case of separate pricing, here is what I thought would be correct. We have for CD1 three different customers, the highest reservation price is 11, implying a profit of 7. So I would multiply it by 3 and find 21. Afterwards I would repeat the same operation with CD2: highest profit is 6. Multiply it by 3=18. And now add these two numbers to find the overall separate pricing profit..
Apparently this is wrong.

Reference no: EM13548822

Questions Cloud

What is the amount of cash collections : What is the amount of cash collections that Emily will report in the Operating Activities category of its 2010 statement of cash flows assuming that the direct method is used?

Daughter college education : Man wishes to set aside money for his daughter's college education.

Find the gross profit rate for each company : Show all computations, calculate the profit margin ratio and the gross profit rate for each company and discuss your findings in part.

Determine at what rate is energy delivered to the resistor : a top view of a bar that can slide on two frictionless rails. The resistor is R = 6.20 ?,and a 2.50-T magnetic field is directed perpendicularly downward, At what rate is energy delivered to the resistor

Ricky company to use : What pricing method would you advise Ricky's company to use?

Explain how many g of a metal are required to make a thin : How many g of a metal(p=10.76 g/cm3) are required to make a thin of a 0.726 mm and an area of 12.6 cm2

Use the logic of the cournot equilibrium : Use the logic of the Cournot equilibrium to explain why it is more effective for a firm to build capacity ahead of its rival than it is for that firm to merely announce that it is going to build capacity.

Explain particles of matter exhibit some of the properties : According to quantum mechanics, all particles of matter exhibit some of the properties normally associated with

Estimate the intensity level generated by one harmonica : The intensity level of 34.07 harmonicas in a harmonica band is 78.31 dB. Compute the intensity level generated by one harmonica

User Account

All Pages