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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

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 in a customer'snameand$50foreach additional booking.

"We Book Your Honeymoon Tour"

Customer1

Cruise $7,000

Casino $3,000

Customer2

Cruise $2,000

Casino $6,000

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

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