Ready Tires features more than a dozen brands of tires in many sizes. Two of the brands are RoadPlus and RoadPower. Information about the two brands follows.
...............................RoadPlus................... RoadPower
Selling price:
Tire, installed ..................$180......................... $170
Cost per tire..................... 120............................ 80
As shown, selling prices include installation costs. Each tire costs $20 to install.
1. Compute each brand's net unit selling price after installation.
2. Was cost the main consideration in setting those prices?
3. What other factors could have influenced those prices?