Suppose that SONY is trying to decide how to price a new stereo system composed of a receiver, CD player, and speakers. The company has estimated that two different groups will purchase these products: students and club owners, each group consists of 10,000 people. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as per the table below:

SONY 's objective is to maximize revenues, and it is considering three strategies to price its stereo components: (1) a standard strategy whereby it prices each stereo component separately; or (2) bundling the three components together and selling only bundles containing the receiver, CD player, and speakers. (3) offering the bundle and each component of the stereo separately.