Question: Follow up question ( note that the dollar amounts have not changed from the previous scenario. ) You operate a Caribbean destination resort. You currently

Follow up question(note that the dollar amounts have not changed from the previous scenario.)

You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price. Your marginal cost per customer across both tours is $4800.

Customer Preferences

Cruise

Casino

Customer1

$7,000

$3,000

Customer2

$2,000

$6,000

Youknowthat33%ofyour customers will never bundle,21%of your customers decline cruises because of seasickness and12%decline the casino trip saying they don't believe in gambling.

Given the preferences distribution, will the mixed bundling increase profits?To support your answer,you must show your calculation of the net gain in profit,if any,with a mixed bundle strategy.

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