Question
Your company, Stars-R-Us, licenses autotuning technology to aspiring TikTok stars on a monthly basis. Each license is sold for $45 and costs $15 to produce.
Your company, Stars-R-Us, licenses autotuning technology to aspiring TikTok stars on a monthly basis. Each license is sold for $45 and costs $15 to produce. A state-owned enterprise, having commandeered your intellectual property, has decided to enter the market selling at $20. Your customer base of Zoomers and younger millennials is pretty loyal though, and through some focus groups, youve found that they will continuing buying your product if the price isnt above $30. What is your target cost if you want to achieve a profit of $25 on each sale?
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