15:22 on To the Bundle Pure Bundle - Pure bundle Le. you will only sell coffee and muffin together Price Coffee Muffin Bundle How Many Will You Sell Early 099 0 79 178 Late 0.89 139 2.28 Profit from Bundling Profit Margin Muffin Net Profit Bundle Net Profit Pure Bundle Early 0.84 019 1 03 206 Late 074 0 79 153 153 MC of coffee .15 MC of muffin .40 Tying- Offer a Bundle Price and Allow Some Items to Be Sold Separately Why will you never sell the muffin Tying - You offer a bundle, separately? Sell separately at 5.79 we can sell, PriceCoffe MuffiBundle revenue = $1.58. But net profit will be only $.38, Early 0.99 0.79 1.78 Getting the high price selling 1 we get net profit 5.79 What is our best bundle price? We will the the muffin to coffee and sell Late 0.89 1.39 2.28 for $2.28 with net profit of $1.53 What will be our price for coffee if sold Forming a Policing Policy separately? Coffee will be sold separately for 5.99 Contribution with profit of 5.84 What is the profit from tying? Marginffe MuffiNet Profit B Sell 1 bundle $2,28 with net profit $1.53 and 1 coffee at 5:90 with net profit $.84 Early 0.84 0.19 1.03 for total profit $2.37 which is greater than the profit from pure bundling of $2.06. Late 0.74 0.79 1.53 O A