You are investigating the use of automated robots to replace some of the tasks performed by waiters and waitresses in your neighborhood restaurant. The robots are capable of clearing tables and delivering food to customers. Customer interactions to order food would continue to be done by humans. You estimate that you could reduce your staff from 15 workers making $15/hour to around 7 workers. In addition, you are sure that use of the robots would attract additional customers perhaps increasing sales by $100,000/year. The robots cost $75,000 each and you figure you will need two or three depending on how fast business increases. Perform an analysis to determine if hiring robots and letting humans go makes good economic sense.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
You are investigating the use of automated robots to replace some of the tasks performed by waiters and waitresses in your neighborhood restaurant. The robots are capable of clearing tables and delivering food to customers. Customer interactions to order food would continue to be done by humans. You estimate that you could reduce your staff from 15 workers making $15/hour to around 7 workers. In addition, you are sure that use of the robots would attract additional customers perhaps increasing sales by $100,000/year. The robots cost $75,000 each and you figure you will need two or three depending on how fast business increases. Perform an analysis to determine if hiring robots and letting humans go makes good economic sense.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
