Triton Submarines LLC offers small submersibles that can take up to three individuals 1,000 m deep to explore the ocean. Triton recommends the following optional equipment as a part of the purchase of a Triton or Discovery submarine. Each item is priced to include an "integration fee," a fee directly charged by Triton for integrating the optional equipment with the submersible. USBL Tracking System with Acoustic Modem Manipulator System Doppler Velocity Log High-Intensity Discharge External Lights X2 Color Imaging Sonar System $52,812 $45,800 $17,250 $13,645 $15,000 a. How well can a customer price-compare submersibles? b. How well can a customer price-compare the optional equipment for a submersible? c. How well can a customer price-compare the integration fees for adding optional equipment to submersibles? d. In which part of the offer is Triton Submarine most likely to seek an above-average profit margin? The submarine, the optional equipment, or the integration fee?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.2SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Triton Submarines LLC offers small submersibles that can take up to three
individuals 1,000 m deep to explore the ocean. Triton recommends the following
optional equipment as a part of the purchase of a Triton or Discovery submarine.
Each item is priced to include an "integration fee," a fee directly charged by Triton
for integrating the optional equipment with the submersible.
USBL Tracking System with Acoustic Modem
Manipulator System
Doppler Velocity Log
High-Intensity Discharge External Lights X2
Color Imaging Sonar System
$52,812
$45,800
$17,250
$13,645
$15,000
a. How well can a customer price-compare submersibles?
b. How well can a customer price-compare the optional equipment for a
submersible?
c. How well can a customer price-compare the integration fees for adding
optional equipment to submersibles?
d. In which part of the offer is Triton Submarine most likely to seek an
above-average profit margin? The submarine, the optional equipment, or
the integration fee?
Transcribed Image Text:Triton Submarines LLC offers small submersibles that can take up to three individuals 1,000 m deep to explore the ocean. Triton recommends the following optional equipment as a part of the purchase of a Triton or Discovery submarine. Each item is priced to include an "integration fee," a fee directly charged by Triton for integrating the optional equipment with the submersible. USBL Tracking System with Acoustic Modem Manipulator System Doppler Velocity Log High-Intensity Discharge External Lights X2 Color Imaging Sonar System $52,812 $45,800 $17,250 $13,645 $15,000 a. How well can a customer price-compare submersibles? b. How well can a customer price-compare the optional equipment for a submersible? c. How well can a customer price-compare the integration fees for adding optional equipment to submersibles? d. In which part of the offer is Triton Submarine most likely to seek an above-average profit margin? The submarine, the optional equipment, or the integration fee?
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