1)You operate a Caribbean destination resort.You currently offer plans for a cruise departing from the resort and plans for a casino stay.It is expected that in 2021 there will be some return to more normal travel.You will re-launch your advertising for 2021 announcing that customers will be able to do both tours for one price. Your marginal cost per customer across both tours is $4800.

a)Here are the customer preferences.Determine how much your net profit will increase with a single bundle price compared to the maximum net profit you would make with a high price strategy.

We Book Your Honeymoon Tour

Cruise

Casino

Customer 1

$7,000

$3,000

Customer 2

$2,000

$6,000

b)From experience you know that some traveler will never bundle.For example, you know that about 21% of your customers decline cruises because of sea sickness.At least 12% decline the casino trip saying they don't believe in gambling.As a rough estimate you initially expect that approximately 33% of your customers will never bundle.Will mixed bundling increase profits?You must show that calculations that support your conclusion.