Question
Bauhaus, a German home-improvement store, is considering a promotional bundle in the month of June consisting of a patio set and a sun umbrella. Bauhaus
Bauhaus, a German home-improvement store, is considering a promotional bundle in the month of June consisting of a patio set and a sun umbrella. Bauhaus usually sells patio sets for 300 per set and sun umbrellas for 200 per umbrella. The variable cost of the patio set is 150 and that of the sun umbrella is 50. If the promotional bundle is anticipated to reduce the sales of individual patio sets by 50 percent and the sales of individual sun umbrellas by 25 percent, what price should Bauhaus set for the bundle to ensure that it sells 100 of them? Show all your calculations.
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