Cambridge Software Crop. - HBR Case Study Solution - Excel Calculations

Exhibit 1 Cost, Demand, and Willingness-to-Pay Estimates

"Student"

Estimated product completion cost $100,000
Variable cost (per unit) $15
Segment Dev. Willingness-to-Pa
Market Segment Size Cost -----------------------(per unit)------

Large, multidivisional corporations 5,000 $150,000 $150
Corporate R&D and university laboratories 2,000 $100,000 $100
Consultants and professional companies 20,000 $200,000 $200
Small businesses 15,000 $200,000 $175
Students 500,000 $300,000 $50

, "Commercial" "Industrial"

$200,000 $500,000
$25 $35
Willingness-to-Pay
-------------------(per unit)------------------------

$1,200 $2,500
$1,000 $2,000
$300 $600
$225 $300
$60 $100