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Should the delivery service charge one price or will segmentation increase profits?Support your conclusion by calculating the profit from each strategy provided in Questions 4,5,&

Should the delivery service charge one price or will segmentation increase profits?Support your conclusion by calculating the profit from each strategy provided in Questions 4,5,& 6.

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Should the delivery service charge one price or will segmentation increase profits?Support your conclusion by calculating the profit from each strategy provided in Questions 4,5,& 6.

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Question 8

You help couples book their perfect honeymoon.You currently offer plans for a cruise and for a casino stay.

Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits.

The table below shows the customer preferences.Your costs are$100for the first booking and$50for each additional booking.

"We Book Your Honeymoon Tour"

Cruise

Casino

Customer1

$7,000

$3,000

Customer2

$2,000

$6,000

Given the preferences, would bundling improve profits over the high-cost strategy?Support your conclusion by showing if (by how) profits differ under each strategy.

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