Scenario: You are the product manager for a new home gym product. Your product suite includes $(1)$ the equipment and $(2)$ an online service for personalized workouts and virtual coaching. You must set a price for each product. You are considering a low$-$high strategy $($as is used for products such as razors and printers$),$ selling the equipment at a low price $($$$350$ wholesale$)$ and selling the monthly service for a premium $($$$19\mathrm{.}99/$month direct to consumer$).$ The alternative is the opposite, with a high price for this high$-$quality equipment $($$$600$ wholesale$)$ and a lower price service to encourage trial $($$$9\mathrm{.}99/$month direct to consumer$).$ Either way, your costs stay the same:Equipment costs per unit: $$250$ in direct costs, $$80$ allocated indirect costsService costs per month: $$2$ in direct costs, $$7$ allocated indirect costsVolume assumptions are also important:You believe that you can sell $($a$)20,000$ units in a year at the lower equipment price or $($b$)4,000$ units in a year at the higher equipment price. You also predict that you will have a $60\%$ adoption rate of the monthly service with the low$/$high strategy, and an $80\%$ adoption rate of the monthly service with the high$/$low strategy. Either way, you have industry data $($specific to subscription services$)$ that shows that the average customer lifespan $($how long a customer stays with a company$)$ is $12$ months.