Question: 1. Right-click and download the Pricing to Multiple Segments data Minimize File Preview Example 16-1 Pricing to Multiple Segments to your hard drive. A contract

 1. Right-click and download the Pricing to Multiple Segments data Minimize

1. Right-click and download the Pricing to Multiple Segments data Minimize File Preview Example 16-1 Pricing to Multiple Segments to your hard drive. A contract manufacturer has identified two customer segments for its production capacity-one willing to place an order more than one week in advance and the other willing to pay a higher price as long as it can provide less than one week's notice for production. The customers that are unwilling to commit in advance are less price-sensitive and have a demand curve d1=5,00020p1. Customers willing to commit in advance are more price-sensitive and have a demand curve of d2=5,00040p2. Production cost is c=$10 per unit. 1. If total production capacity is limited to 4,000 units, what should the contract manufacturer charge each segment? 2. What happens to prices and profitability when the sensitivity for customers that are willing to wait (i.e., segment 2 ) increases from p2=40 to p2=80? What did you see/learn from this exercise

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