Let’s suppose that fresh out of college, you land a job at Ford. Your first assi
ID: 1109120 • Letter: L
Question
Let’s suppose that fresh out of college, you land a job at Ford. Your first assignment is to figure out how to price and/or package the options that Ford offers for its model known as the Fiesta. You are told that Ford sells the Fiesta to three different types of customers (in equal numbers). The three options that you must price are the Moonroof, Air Conditioning, and Automatic Transmission. The amount that each consumer is willing to pay for each of these options is listed below.
What is your recommendation? If your recommendation is adopted, what options will each customer purchase and how much revenue will Ford earn by selling these options?
Moonroof Automatic Transmission Customer 1 Customer 2 Customer 3 What is your recommendation? If your recommendation is adopted, what options wil each $800 $550 $330 $750 $900 $400 $300 $750 $620 customer purchase and how much revenue will Ford earn by selling these options?Explanation / Answer
Moonroof model
For the Moonroof model, the price of the car should be $ 550 and by keeping this price both customer 1 and customer 2 will be willing to buy this model .
The revenue earned by keeping this price = $ 1100
Automatic transmission
For the automatic transmission model, the price should be $ 750 . At this price both customer 1 and customer 2 will be willing to buy . Revenue earned at this price equals $ 1500 .
Air conditioning
For this model, the price of the car should be $ 620 . At this price customer 2 and customer 3 will be willing to buy . The revenue at this price equals $ 1240
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.