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1 and 2. The following case information will be used for questions 1 and 2 (questions 25 and 26 overall) in the short answer section:

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1 and 2. The following case information will be used for questions 1 and 2 (questions 25 and 26 overall) in the short answer section: $75 for the replacement of the set (out of which they need to pay $25 for expenses). The existing tires Our new tires only need to be replaced every two years and still costs customers $75 to replace (with the same $25 in expenses). Our tires are produced for $250 per set. Based upon current sales projections, the development of this product will cost an additional $40 per set. Transportation and marketing costs $30 per set. Please answer each question indicating the letter corresponding to the questions being answered. a. If Goodyear engages in cost-plus pricing, in which they add 25% to their costs for profit, what will be the price charged by Goodyear fi this product (assuming that independent repair shops don't charge extra for the headlights themselves and instead sell the tires to consumers for the same price they pay to obtain them from Goodyear)? What is the true economic value of this product assuming no discounting over two years (if we only account for the value outlined i e question)? f Goodyear wants to increase the perceived value of this product, how could they do this, in general

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