Using the following data, prepare a differential pricing scheme for a service to four (4) market segments: Seniors, Adults, Youth, and Children.
Facility charge $3,000
Facility user surcharge $4/per participant
Administrative overhead $1,500
Program supplies $2.50 / participant
Transportation $200/ 50 participants (or portion thereof)
Our goal is to make a modest profit of approximately $1,000. Seniors and children will be charged an amount that is 80 percent of the individual cost of providing the service. The individual price for youth participants will reflect a 10% subsidy.
Market research leads us to expect 200 adults, 40 seniors, 75 youth, and 30 children to participate.
(Show step-by-step calculations and your final pricing scheme)