What price should natbike charge each segment

Assignment Help Operation Management

Reference no: EM131372039

NatBike, a bicycle manufacturer, has identified two customer segments; one that prefers a customized bicycle and is willing to pay a higher price and another that is willing to take a standarized bicycle but is more price sensitive. Assume that the cost of manufacturing either bicycle is $200. Demand from the customized segment has a demand curve of d1= 20,000-10p1 and the demand from the price-sensitive standard segment is d2= 40,000-30p2.

What price should NatBike charge each segment if there is no capacity constraint?

What price should NatBike charge each segment if the total available capacity is 20,000 bicycles?

What is the total profit in each case?

Reference no: EM131372039

Questions Cloud

Which form of investment is more risky : Which form of investment is more risky: developing a new drug or building a new nursing home? Which type of publicly traded for-profit firm would you expect to show greater variability in earnings, a pharmaceutical firm or a nursing home chain?

The two assembly lines are spaced far apart : So far, Tesla Motors is the only producer of fancy all-electrical cars (no gasoline engine) for the US market. What would you think if you visited their factory and found that the two assembly lines are spaced far apart, with a lot of unused space be..

The topic of effective brand management : Write a paragraph on the topic of effective brand management. Use three of the following words in the paragraph: brand loyalty, lookalike products, brand awareness, market saturation.

Expansion strategy focused on acquiring : To extend its international presence, Martinetti International has formed an expansion strategy focused on acquiring other like enterprises outside the European region. Martinetti, a subsidiary of a publicly owned parent company, is based in Rome whe..

What price should natbike charge each segment : NatBike, a bicycle manufacturer, has identified two customer segments; one that prefers a customized bicycle and is willing to pay a higher price and another that is willing to take a standarized bicycle but is more price sensitive. What price should..

Monitor forecast data modifications by field personnel : How can you monitor forecast data modifications by field personnel to ensure changes result in improvements over original computer forecasts?

Strategies that they can use to enter the global market : From the scenarios, Chris and Erica are considering different options for business expansion, and one (1) of the considerations is to venture into the global market. Discuss two (2) strategies that they can use to enter the global market, and explain..

Critical tasks and skills involved in pre-group planning : Provide at least three examples of a time when you demonstrated the critical tasks and skills involved in pre-group planning. If you have not planned for a group, describe the critical tasks and skills you would undertake. Be sure to describe the sit..

How you would use core knowledge of pre-group planning : Provide at least three examples of a time when you demonstrated the core knowledge of pre-group planning. If you haven’t yet done pre-group planning, discuss three possible examples of how you would use core knowledge of pre-group planning.

User Account

All Pages