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A customer has her heart set on buying a new Honda Civic LE. She is able to find online both the MSRP (manufacturer’s suggested retail price) and actual invoice prices for the car. A good friend at a Ford dealer advises her to wait until the last day of a sales initiative to make an offer and not to pay more than 2% over invoice. Armed with this information, she arrives at the Honda dealer, ready to make a purchase. How has this dealer been affected by the bargaining power of buyers?
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In January, 300 people sign up for a dance studio membership. What is the present value of total net profit from January to May for this cohort of dancers?
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