What set of prices maximize profits

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Reference no: EM131380441

A German machine company sells industrial machinery and maintenance policies for the machine. There are four market segments.

Figure 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?

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Reference no: EM131380441

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