Question
You work for an IT company which recently developed a software package for a hospital, and multiple copies of the software will be installed on
You work for an IT company which recently developed a software package for a hospital, and multiple copies of the software will be installed on different computers of this hospital. The fixed cost of developing this software is $9,000. The marketing team finds that within this hospital, demand for the software is Qd = 300 0.2P and that it would cost your company $800 per unit to install and maintain the software at each computer the software is installed on.
The CEO has asked you to construct a two-part pricing strategy for this software.
(A) Under a two-part pricing strategy, what is the per-unit fee?
(B) Under a two-part pricing strategy, what is the fixed fee you charge the hospital? (Hint: As a license fee to use the software)
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