Question: Answer is not $15,030 for cost without bundling and $12,060 for cost with bundling You help couples book their perfect honeymoon. You currently offer plans

Answer is not $15,030 for cost without bundling and $12,060 for cost with bundling

You help couples book their perfect honeymoon. You currently offer plans for

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 mixed bundling as a way to boost profits The table below shows the customer preferences. Your costs are SIOO for the first booking in a customer's name and S50 for each additional booking in the same customer's name. "We Book Your Honeymoon Tour" Customer 1 Customer 2 Cruise $7,000 $2,000 Casino $3,000 $6,000 You know that about 21% of your customers decline cruises because of seasickness. At least 12% decline the casino trip saying they don't believe in gambling. As a rough approximation, you estimate that approximately 33% of your customers will never bundle. Given the preferences distribution, will mixed bundling increase profits? You must show the calculations that support your conclusion.

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