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Would bundling improve profits over the high-cost strategy

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Reference no: EM132529311

You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. The table below shows the customer preferences. Your costs are $100 for the first booking and $50 for each additional booking. "We Book Your Honeymoon Tour"

                                 Cruise                Casino

Customer 1           $7,000                  $3,000

Customer 2             $2,000                 $6,000

Question 1: Given the preferences, would bundling improve profits over the high-cost strategy? Support your conclusion by showing if (by how) profits differ under each strategy.

Reference no: EM132529311

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