What price should it charge to maximize profits

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Mapleville Tennis & Golf Club offers golf and tennis memberships to the residents of Mapleville. Market research has found there are two types of families living in the city: 120 golf-oriented families and 100 tennis-oriented families. Information on the demand prices for golf and tennis memberships by family type is given below. It is not possible to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit. Type of family Tennis membership only Golf membership only Tennis-oriented $150 $50 Golf-oriented $75 $200 If Mapleville Tennis & Golf Club plans to offer bundled golf and tennis memberships, what price should it charge to maximize profits?

Reference no: EM13218638

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