Question
You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at
You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at virtually no cost, i.e.
There is no marginal cost. A marketing research team has assembled the following sale
information.
Online Self Certifications for Social Work License | |||||||
Certification in Online Counseling | Certification as a Group Home Counselor | Bundle | |||||
Customers | TR Counseling | TR Group Home | TR Bundle | ||||
Segment 1 | 1000 | $190 | 190,000 | $70 | 280,000 | $260 | 260,000 |
Segment 2 | 1000 | $150 | 300,000 | $90 | 270,000 | $240 | 720,000 |
Segment 3 | 1000 | $95 | 285,000 | $160 | 320,000 | $255 | 510,000 |
Segment 4 | 1000 | $35 | 140,000 | $195 | 195,000 | $230 | 920,000 |
You are researching the options for pricing the courses. Your goal is to achieve maximum
revenue to establish funding to maintain and update the system to reflect annual policy changes
in licensing requirements.
Complete the calculations for Total Revenue by determining how many customers at of the
segment prices.
a)At what individual price would revenue be maximized for the Certification in Online
Counseling? Explain/support your conclusion with the data from the table.
b)At what individual price would revenue be maximized for the Certification as a Group
Home Counselor? Explain/support your conclusion with the data from the table.
c) The maximum revenue for individual pricing would be [3000]
I'm not sure if 300,000 is the correct answer.
d) If you employed pure bundling what would be the maximum total revenue?
Explain/support your conclusion with the data from the table
I'm not sure if this answer is correct.
4000*230=920,000
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