Question
Imagine that you are advising a small new car dealership. They ask: A) given the information below, what is the best price they should put
Imagine that you are advising a small new car dealership. They ask: A) given the information below, what is the best price they should put on all the cars, assuming every buyer pays the same price and how much profit will they make? B) is there a better way to make profits and how much profit could they make? why might this strategy be difficult to use? Fixed cost for business is $2000 Variable cost is $15,000 for each car they get from the manufacturer. They anticipate the following customers. Ms. Rich would pay up to $20,000 Mr. Upper Middle would pay up to $18,000 Ms. Middle would pay up to $16,000 Mr. Lower Middle would pay up to $14,000 Ms. Poor would pay up to $12,000
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