Let’s suppose that fresh out of college, you land a job at Ford. Your first assignment is to figure out how to price and/or package the options that Ford offers for its model known as the Fiesta. You are told that Ford sells the Fiesta to three different types of customers (in equal numbers). The three options that you must price are the Moonroof, Air Conditioning, and Automatic Transmission. The amount that each consumer is willing to pay for each of these options is listed below.
Moonroof Automatic Transmission Air Conditioning
Customer 1 $800 $750 $300
Customer 2 $550 $900 $750
Customer 3 $330 $400 $620
What is your recommendation? If your recommendation is adopted, what options will each customer purchase and how much revenue will Ford earn by selling these options?