Blackstone,Inc.,features over a dozen models of tires in many different sizes.Two of the models of tires are Deluxe and Regular.Tire size LX14 is available in both models.The following information was obtained:
$\begin{array}{lrr}&\text { Deluxe }&\text { Regular }\
\text { Selling prices: }\
\text { Single tire, installed } & \$ 54 & \$ 49 \
\text { Set of four tires, installed } & 199 & 185 \
\text { Cost per tire } & 30 & 23
\end{array}$
The selling prices include installation costs.Each Deluxe tire costs $6 to mount and balance; each Regular tire costs $5 to mount and balance.
a. Compute the unit selling price for the tire only for both single tires and sets of four for each alternative.
b. Was cost the major consideration supporting these prices?
c. What other factors could have influenced these prices?

Question

Blackstone,Inc.,features over a dozen models of tires in many different sizes.Two of the models of tires are Deluxe and Regular.Tire size LX14 is available in both models.The following information was obtained:
 $\begin{array}{lrr}&\text { Deluxe }&\text { Regular }\
\text { Selling prices: }\
\text { Single tire, installed } & \$ 54 & \$ 49 \
\text { Set of four tires, installed } & 199 & 185 \
\text { Cost per tire } & 30 & 23
\end{array}$ 
The selling prices include installation costs.Each Deluxe tire costs $6 to mount and balance; each Regular tire costs $5 to mount and balance. 
a. Compute the unit selling price for the tire only for both single tires and sets of four for each alternative.
b. Was cost the major consideration supporting these prices?
c. What other factors could have influenced these prices?

Quizplus · Accepted Answer

The Answer of Blackstone,Inc.,features over a dozen models of tires in many different sizes.Two of the models of tires are Deluxe and Regular.Tire size LX14 is available in both models.The following information was obtained:
 $\begin{array}{lrr}&\text { Deluxe }&\text { Regular }\
\text { Selling prices: }\
\text { Single tire, installed } & \$ 54 & \$ 49 \
\text { Set of four tires, installed } & 199 & 185 \
\text { Cost per tire } & 30 & 23
\end{array}$ 
The selling prices include installation costs.Each Deluxe tire costs $6 to mount and balance; each Regular tire costs $5 to mount and balance. 
a. Compute the unit selling price for the tire only for both single tires and sets of four for each alternative.
b. Was cost the major consideration supporting these prices?
c. What other factors could have influenced these prices?

Blackstone,Inc The Selling Prices Include Installation Costs