Part I

You are a marketing manager for a company that sells a commercial printer and the VP of marketing for the company has asked you to assess the economic value of th$$ printer and recommend a price that creates meaningful value for business customers.

The table below shows the lifecycle costs for the company's commercial printer and that of its closest competitor. The VP told you the company's CEO thought a profile of $$1,844$ would offer business customers a fair value. But the VP wanted a more robust evaluation of pricing options and asked you to assess the economic value for these five other price points: $$1,600($the competitor's price$),$ $$1,614,$$$1662,$$$1,712,$$$1,763.$

To complete Part A$,$ calculate and compare the price premiums and value advantage percentages for the company's printer at the six price points, i$.$e$.,$ $$1,844$ and the other five price points given above. After comparing the results, recommend which price you think would be best for the company and for customers. Explain your recommendation.

To complete Part B$,$ assume the company improves its printer so that its usage of color ink$/$toner supplies falls from $$5,100$ to $$4,600.$ Repeat Part A and recommend which price you think would be best for the company and for customers. Explain your recommendation.

$\backslash$table$[[$Lifecycle Costs,Competitor's Printer,Company's Printer$],[$Price$,$$$1,600,$$$1,844$