Question

Darryl and Ted are selling wrapping paper for a school fundraiser. Customers can buy rolls of plain wrapping paper and rolls of shiny wrapping paper.

A. $8 for plain wrapping paper, $15 for shiny wrapping paper.

B. $10 for plain wrapping paper, $12 for shiny wrapping paper.

C. $12 for plain wrapping paper, $8 for shiny wrapping paper.

D. $15 for plain wrapping paper, $10 for shiny wrapping paper.

Answer 1

It provides a balanced pricing strategy, offering affordability with $10 for plain wrapping paper and a slightly higher yet still attractive price of $12 for shiny wrapping paper. This approach caters to a wider range of customers, maximizing both participation and revenue. Thus, the correct answer is Option B is the best pricing strategy for maximizing sales and fundraising revenue.

Step-by-step explanation:

In fundraising, the goal is often to strike a balance between affordability and profitability. Option B offers a reasonable price point for both plain and shiny wrapping paper, with $10 for plain and $12 for shiny. This pricing structure is likely to attract more customers as it provides a lower-cost option for those seeking simplicity and a slightly higher-cost option for those wanting a more decorative touch.

Option B stands out as the most balanced and competitive choice. While other options may either deter budget-conscious customers or limit the potential for higher revenue from the shiny wrapping paper, Option B caters to a broader range of preferences. It avoids the extremes of overpricing or underpricing either type of wrapping paper, creating a sweet spot that encourages more participants to engage in the fundraiser.

Thus, the correct answer is Option B is the best pricing strategy for maximizing sales and fundraising revenue.