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A local car rental agency maintains a fleet of seven passenger vans. They found if the daily rental charge is around $30 they have approximately 90 van reservations in a month. On the other hand, if the daily rental charge is around $50 they get approximately 60 reservations in a month. For the sake simplicity, we can assume that the average duration of reservation is 2 days and the demand is linear. If a van is rented the average daily operational cost (including depreciation) to the agency is $15. The rental agency is thinking of two pricing strategies. As per the first strategy they will charge all customers $40 daily. As per the second strategy they will charge some customers (as many as possible) $70 daily and some others (as many as possible) $20 daily.
Which strategy is likely to be more profitable? Calculate potential average monthly profits for each of the two strategies separately and justify your recommendations.
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There are only 3 possible ways of how you can grow your business and they are. Time bombs are not that big of a deal when it comes to sales and marketing,
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It has been argued that traditional approaches to strategic planning (as represented in figure 6.1) are good systems for exercising control but are not much good for developing strategy, especially for organizations that are facing radical changes in..
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As a part of a campaign for a new gourmet foods store, advertisement flyers will be sent through direct mail to high income zip codes to solicit business
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