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Continuing the analysis of Ginnie's Gym Refreshment Bar:


Hydration Power Drink
Satisfying Smoothie
Bundle Price
Net Profit
Early
7.00
5.00

Late
6.00
10.00



Calculate the bundle prices and net profits. (10pt)



Determine which bundle price will maximize net profit. Show the steps to support the conclusion. (5pt)



Determine the net profit from a tying strategy. Show the steps to support the conclusion. (5pts)

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ogorwyne

The bundle that is going to maximize profit is going to be Late

How to find the bundle that would maximize profit

we have the net profit from early to be 7 + 5 = 12

We have the net profit from late to 6 + 10 = 16

We can see that the value for late is greater at 16 compared to that of the early.

Hence we can say that late has the greatest profit.

Next we have to solve for the profit that is made. This is the net profit.

The solution is given as 16 - 12 = 4

What is profit maximization

This is the process where by businesses would try to get the best output possible from the given inputs that they would use in the business. It goal is to be able to maximize the returns that they would make.

Read more on profit maximization here:

https://brainly.com/question/13464288

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