Question

1. Suppose the Glucometer company is to sell the machine only to hospitals, and the company will maintain the Glucometer machine for the hospital for the first four years. A hospital, on an average, will use the machine 80 times a day, 300 days in a year. If this is the case, then suggest a price that the company should charge hospitals and justify your answer. What is the basis of your recommendation

Answer 1

Answer:

Note: The full question is attached as picture below

Glucometer company's Total cost can be calculated as $3000 + $500*4 = $5000

Also we can find the customers served in four years of visit = 80*300*4 = 96,000  customers

Also, by estimating that each customer pays $1 for utilizing the machine, the hospitals can make an estimated revenue of $96000.

=> Anything below the range of $96,000 will be an advantage for the hospitals and anything to the rise of $5,000 will be an advantage for the Glucometer Company.

Thus the price of these machines should be decided between the ranges to collate on the revenue goals of the Glucometer Organization.