Question: Q 3 ( 1 4 pts ) : Charts above. Note: UVC = unit variable cost. The horizontal axis represents customer segments of varying sizes.

Q3(14 pts):
Charts above. Note: UVC = unit variable cost. The horizontal axis represents customer segments of varying sizes. The maximum perceived values are shown below.
A) Why is $10 the optimal price to maximize total contribution if a single price point is used? Show through calculations (5 pts). Hint: calculate the total contribution at each of the five prices and then compare.
B) Show through calculations how you get $3800 as the total contribution in the 2nd scenario (4 pts).
C) Suppose I use a different 2-prices structure, i.e., I advertise $15 to the first two segments and $10 to the other three segments. What is the total amount of contribution that I can earn? Show calculations.(5 pts)
Q 3 ( 1 4 pts ) : Charts above. Note: UVC = unit

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