Maytas Pharmaceutical Company has recently developed a new, fast acting cold/flu medicine, which includes two variants: one
Question:
Maytas Pharmaceutical Company has recently developed a new, fast acting cold/flu medicine, which includes two variants: one is for use at night and another for daytime use. The firm’s target market consisted of 1000 consumers |
belonging to one of four segments, A, B, C, and D. The segment sizes and each segment’s willingness to pay for a box of cold/flu medicine appear in the table below. |
Willingness To Pay | ||
Day Medicine | Night Medicine | |
Segment A (25%) | $1.00 | $9.00 |
Segment B (25%) | $4.00 | $8.00 |
Segment C (25%) | $8.00 | $4.50 |
Segment D (25%) | $9.00 | $1.00 |
The variable cost of manufacturing a box of day medicine is $2.00, night medicine is $3.00, and $5.00 for the bundle.
Evaluate the three various pricing alternatives (pure bundle, mixed bundle) and recommend a corresponding price discrimination strategy for Maytas.
Please note that I need to know how to solve for Pure bundle and Mixed Bundle
Expert Answer:
To evaluate the pricing alternatives pure bundle and mixed bundle and recommend a corresponding price discrimination strategy for Maytas Pharmaceutical Company we need to understand the concepts and c... View the full answer
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
