Question: Question 9 Follow up question ( note that the dollar amounts have not changed from the previous scenario. ) You help couples book their perfect

Question 9

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

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 bundling as a way to boost profits.

The table below shows the customer preferences.Your costs are$100for the first booking and$50for each additional booking.

"We Book Your Honeymoon Tour"

Cruise

Casino

Customer1

$7,000

$3,000

Customer2

$2,000

$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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