Townes Tire Outlet features more than a dozen brands of tires in many sizes. Two of the

Towne’s Tire Outlet features more than a dozen brands of tires in many sizes. Two of the brands are Gripper and Roadster, both imports. The tire size 205/70-VR15 is available in both brands. The following information about the two brands was obtained:

As shown, selling prices include installation costs. Each Gripper or Roadster tire costs $20 to mount and balance.
1. Compute each brand’s net unit selling price after installation for both a single tire and a set of four.
2. Was cost the main consideration in setting those prices?
3. What other factors could have influenced thoseprices?

Transcribed Image Text:

Gripper Roadster Selling price: Single tire, installed Set of four tires, installed Cost per tire $125 110 400 60 460 90