Finance help

Using the following data, prepare a differential pricing scheme for a service to four (4) market segments:  Seniors, Adults, Youth, and Children.

Associated Costs:

  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)

 

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