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A German machine company sells industrial machinery and maintenance policies for the machine. There are four market segments. Figure 5-9 shows the size of each market segment and the amount each segment will pay for the machine separately, maintenance separately, or the bundle of machinery + maintenance. The variable cost is $550 per machine and $470 per maintenance agreement. What set of prices maximize profits?
5.9
Machine Maintenance Bunddle
Costs $550 $470 $1020
Size Machine Use Max Mainenance Max Bundle Max
12 1250 1500 2600
23 1450 540 1750
22 1080 1200 2090
43 1390 1100 2350
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