Two cash-equivalent sales are otherwise identical after controlling for rights, terms, date and relevant characteristics. The with-feature price is $325,000 and without-feature price $310,000. What positive contribution magnitude does this pair indicate for the feature? No direction toward a particular subject is requested.
Correct Answer
B) $15,000
325000−310000=15000. Common errors: reporting the with-feature price gives $325,000; averaging the two prices gives $317,500; halving the paired difference gives $7,500.
Why This Is the Correct Answer
325000−310000=15000. Common errors: reporting the with-feature price gives $325,000; averaging the two prices gives $317,500; halving the paired difference gives $7,500.
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