A company sells two products, Product C and Product D. Assume that the variable costs for each product are $7. In a particular market, men and women value the two products as follows:

(a) If management is considering offering a bundle containing both products, what is the price that should be charged for this bundle to maximize profits? Justify your answer.

(b) If the companys goal is to maximize profits, should these products be offered only bundled together, offered only separately, or offered both bundled together and separately? Justify your answer.

Value to the Customer Product C Product D Men (50% of market) Women (50% of market) $12 $14 $15 $11 Value to the Customer Product C Product D Men (50% of market) Women (50% of market) $12 $14 $15 $11