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What is the best pricing strategy? Demonstrate the difference in the profit from

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What is the best pricing strategy? Demonstrate the difference in the profit from each strategy.
4) You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both tours for one price. Your marginal cost per customer across both tours is
a) Here are the customer preferences. Determine how much your net profit will increase with a single bundle price compared to the maximum net profit you would make with a high price strategy.
Destination Resort Packages
Cruise Casino
Customer 1 $7,000 $3,000
Customer 2 $2,000 $6,000
b) From experience you know that some traveler will never bundle. For example, you know that about 21% of your customers decline cruises because of sea sickness. At least 12% decline the casino trip saying they don’t believe in gambling. As a rough estimate you initially expect that approximately 33% of your customers will never bundle. Will mixed bundling increase profits? You must show that calculations that support your conclusion.
Question 2.
Your Best Brand Bike Shorts – BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, “the taste for bicycling has changed. The price elasticity of demand is much more inelastic. The price elasticity of demand has decreased from -5.76 to -2.70.”
Before the campaign, your price was $240 per pair of BBB Shorts. What should the new price be?
Question 3. (Is attached)

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