Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Society And Sustainability

Authors: Nick Silver

1st Edition

1137560606, 978-1137560605

More Books

Students also viewed these Finance questions

Question

What methods can be used to study the growing brain?

Answered: 1 week ago