What pricing strategy will yield the greatest revenue

Assignment Help Business Economics

Reference no: EM13984921

A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an autodefrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with auto defrost at $150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women comprise the bulk of microwave shoppers?

Reference no: EM13984921

Questions Cloud

Present a consolidated balance sheet : Present a CONSOLIDATED balance sheet (a T-account summarizing the assets and liabilities of all commercial banks in the system) with the following information: The reserve ratio is 32 percent and the total amount of required reserves held by the bank..

Characteristic for something to accepted and used as money : Which is NOT a necessary characteristic for something to be accepted and used as money?

Selected on the basis of a present worth analysis : The manager of a manufacturing factory needs to decide between two different machines. Machine A will have an initial cost of $40,000, an annual operating cost of $30,000, and a service life of 4 years. Machine B will cost $50,000 to purchase, an ann..

What is the present worth of the bonus package : A bonus package pays an employee $2000 at the end of the first year, $2500 at the end of the second year, and so on, for the first 10 years of employment. What is the present worth of the bonus package at 5% interest?

What pricing strategy will yield the greatest revenue : A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to th..

Regression equation with t-statistics in parentheses : Given the following regression equation with t-statistics in parentheses: Salary = 566,400 + 71,928 Goals + 20,403 Assists + 98,430 All-Star (3.45) (2.96) (3.5) (1.30)R2 = 0.95Salary = NHL Salary in $Goals = Number of career goals Assists = Number of..

Preferences for consumption goods and time spent on leisure : Thoreau has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C, L) = CL. The household also has a home production technology summarized by a production function. How much time will Thoreau spend in leisur..

What is the ea financing structure : How EA finance these plans,? What is the EA financing structure? Are the risk and the yield the same? Why did EA choose this structure? What other Islamic finance products that EA could have chosen?

The terms of trade are the : The terms of trade are the

User Account

All Pages