Food for Life makes health foods for active, outdoor people. Their three basic products are whey powder, a high protein strength bar, and a meal additive that has the taste and consistency of sawdust. Research shows that consumers fall into two types (Aand B), and these are described in the table below by their reservation prices for the products. Each consumer will demand no more than one unit of any product at their reservation price. The consumers will value a bundle of the products at the sum of the constituent reservation prices. Each product costs 3 to produce. A bundle of all three products costs 9 to produce. Food for Life does not price discriminate.

What pricing (profit- maximizing) strategy (among pricing separately, pure bundling, and mixed bundling) would you recommend to Food for Life? Why?

Best Pure Bundling Strategy

Customer	Price Per Bundle	Cost Per Bundle	Profit Per Bundle	Number of Units	Profit
A
B

Best Mixed Bundling Strategy

Customer	Price Per Bundle	Cost Per Bundle	Profit Per Bundle	Number of Units	Profit
Customer	Price Per Bundle	Cost Per Bundle	Profit Per Bundle	Number of Units	Profit