Question
Company sells products A, B, and C in a package for $500. Product A is typically sold for $300 and Product B is typically sold
Company sells products A, B, and C in a package for $500. Product A is typically sold for $300 and Product B is typically sold for $170. Company has not previously sold Product C so it does not have a directly observable stand-alone price for Product C. Company's cost of providing Product C is $40 and Company's typical profit margin is 25%. Company has determined that competitors sell Product C for $60.
Company reviews available information and determines the best approach to determine the stand-alone selling price for Product C is the adjusted market assessment approach. Based on the adjusted market assessment approach, what is the stand-alone price Company will use for Product C.
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