Question: You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at

You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at virtually no cost, i.e.

There is no marginal cost. A marketing research team has assembled the following sale

information.

Online Self Certifications for Social Work License
Certification in Online Counseling Certification as a Group Home Counselor Bundle
Customers TR Counseling TR Group Home TR Bundle
Segment 1 1000 $190 190,000 $70 280,000 $260 260,000
Segment 2 1000 $150 300,000 $90 270,000 $240 720,000
Segment 3 1000 $95 285,000 $160 320,000 $255 510,000
Segment 4 1000 $35 140,000 $195 195,000 $230 920,000

You are researching the options for pricing the courses. Your goal is to achieve maximum

revenue to establish funding to maintain and update the system to reflect annual policy changes

in licensing requirements.

Complete the calculations for Total Revenue by determining how many customers at of the

segment prices.

a)At what individual price would revenue be maximized for the Certification in Online

Counseling? Explain/support your conclusion with the data from the table.

b)At what individual price would revenue be maximized for the Certification as a Group

Home Counselor? Explain/support your conclusion with the data from the table.

c) The maximum revenue for individual pricing would be [3000]

I'm not sure if 300,000 is the correct answer.

d) If you employed pure bundling what would be the maximum total revenue?

Explain/support your conclusion with the data from the table

I'm not sure if this answer is correct.

4000*230=920,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!