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Managers of Hike America magazine want to establish a selling price for a one-month full-page advertisement in their magazine. Hiking Trails magazine, their primary competitor,

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Managers of Hike America magazine want to establish a selling price for a one-month full-page advertisement in their magazine. Hiking Trails magazine, their primary competitor, charges $5,000 per month for a full-page ad. The managers of Hike America believe that they can justify a higher selling price by quantifying the EVC and has established the following information: Required: - Compare the monthly contribution margin per reader who buys advertised products. - Compare the monthly contribution margin provided by a full-page advertisement. - From a value-based pricing standpoint what is Hike America's differential value and economic value to the customer (EVC)? - From a value-based pricing standpoint what range of possible prices should Hike America consider when setting a price for a full-page ad. per month

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