Three consumers who want to buy a new car have the following valuations for dealer options: AC Power Brakes Consumer 1 $1,000 $500 Consumer 2 $ 800 $300 Consumer 3 $ 100 $800 Assuming costs are zero, how much would the dealer make if it priced power brakes at $500, priced air conditioners at $600, and sold the bundle for $1,000?

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer