• Manufacturer of servers and high-tech products.

• Currently, there are two market segments: Traditional and Basic.

• Atlantic is a market leader in the traditional market with it’s product ‘Radia’ which is a premier product.

• The have a new basic product which is growing at a greater pace.

Conservative Aggressive

Price of Atlantic Bundle

$ 3400 $ 6800

Value RemarksExpected sales from Tronn servers(units)

21180

Expected number of PESA installations. 10590 50% of 21180Cost of PESA per installation. 189 2000000/10590Total cost of Atlantic bundle. 1727 1538+18930% mark up. 518.1 0.3*1727Final cost 2245.1 1727+518.1

2 Tronn servers 4 Zinc servers RemarksPrice of servers 4000 6800Electricity 500 1000 $ 250 per servers/w licenses cost 1500 3000 $ 750 per serverTotal cost 6000 10800Savings by Tronn 4800 0 10800-600050% of saving 2400 0 50-50 cost sharingFinal cost for Atlantic Bundle

6400 10800 4000+2400

Pricing Method Expected Sales

Revenues Cost Profit

Status- Quo 21180 $18287420 $2416030 $2416030

Comp Based 21180 $36006000 $18287420 $17242030

Cost-plus 21180 $23785140 $18287420 $5021170

Value-in 21180 $33888000 $18287420 $ 15124030