| Question |
You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $ 15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Qd = 300 – 0.2P and that it would cost you $ 1,000 per unit to install and maintain software at this client’s site. The CEO of your company recently asked you to construct a report that compares (1) the profit that results from charging this client a single per- unit price with (2) the profit that results from charging $ 1,450 for the first 10 units and $ 1,225 for each additional unit of software purchased. Construct this report, including in it a recommendation that would result in even higher profits. |
