App World Inc.develops apps for sporting enthusiasts.They have decided to create a new app for golfers that they are calling Slice.The total life cycle of Slice is expected to be three years, with the design phase taking the first year.Following are the estimated costs for the three years:
The management team is considering two pricing strategies:
Required:
Which pricing strategy is more profitable over the products life cycle?

Question

App World Inc.develops apps for sporting enthusiasts.They have decided to create a new app for golfers that they are calling Slice.The total life cycle of Slice is expected to be three years, with the design phase taking the first year.Following are the estimated costs for the three years:
  The management team is considering two pricing strategies:
  Required:
Which pricing strategy is more profitable over the products life cycle?

Quizplus · Accepted Answer

The Answer of App World Inc.develops apps for sporting enthusiasts.They have decided to create a new app for golfers that they are calling Slice.The total life cycle of Slice is expected to be three years, with the design phase taking the first year.Following are the estimated costs for the three years:
  The management team is considering two pricing strategies:
  Required:
Which pricing strategy is more profitable over the products life cycle?