A company has launched a new line of furniture that will wirelessly charge smart devices and is unsure how to determine the optimal price for the products. Using the marketing research information provided, develop an optimal pricing strategy for this line of furniture and answer the following:

1.) What is the optimal price that the company should charge for their wireless charging product line including the desk lamp, floor lamp, work lamp, small bedside table, and large bedside table? Please show all of your work you will be given no credit if you do not show the process you have used in determining the optimal price.

2.) If the fixed costs associated with the development and marketing of the product are $2.5 million, will this pricing strategy be profitable for the company? Why or why not? (Please show all of your work no credit will be given if you do not show the process used to determine your answer).

Marketing Research Survey Results for lKEA Wireless Charging Furniture No Not Sure Yes Q1: Do you own a smartphone? 70% 28% 2% None 3 or more Q2: How many smartphones do you use in your household? 28% 20% 40% 10% Q3: If IKEA were to launch a line of wireless charging furniture, is it likely you would be interested in the following (select one): A wireless charging desk lamp 25% A wireless charging floor lamp 8% A wireless charging work lamp 10% A wireless charging small bedside table 17% A wireless charging large bedsidetable 10% I would not purchase anything 30% $40 $50 $60 $70 $80 $90 $100 $110 $120 Q3: If you were to purchase a wireless charging desk lamp, 30% 10% 28% 15% 10% 4% 2% 1% 0% how much would you be willing to pay? Q4: you were to purchase a wireless charging floor lamp, 10% 16% 3% 5% 31% 20% 8% 4% 3% how much would you be willing to pay? Q5: If you were to purchase a wireless charging work lamp, 2% 4% 17% 26% 24% 10% 9% 7% 1% how much would you be willing to pay? Q6: If you were to purchase a wireless charging small bedside table, 1% 2% 4% 8% 15% 30% 22% 10% 8% how much would you be willing to pay? Q7: If you were to purchase a wireless charging large bedstide table, 8% 35% 25% 20% 0% 0% 2% 4% 6% how much would you be willing to pay? Under 18 18-25 26-35 36-45 46-55 56-65+ Q8: What is your age? 1% 8% 21% 30% 25% 15% Female Male Q9: Are you: 62% 38% Estimated Market Size is 500,000. The margin that lKEA will make on each product is 35%