Determine the costs associated with offering your product. 1. Which costs are fixed and which are...
Determine the costs associated with offering your product.
1. Which costs are fixed and which are variable?
2. Determine the cost & price of a single unit of your product by using formula.
3. Discuss which pricing strategy you are using to determine the price logically?
Please choose any unique product and answer these questions
Homework Answers
Ans) The unique product is Robotic computer. The cost associated with it are the fixed cost and variable costs. 1) Fixed cost are those which does not depend upon the quantity of out and it accrue even if there is no production in this case is the rent of the land taken to established the production facility to manufacture Robots computers and the variable costs are those which very according to the production for example of the productions of the robotic computer is increased than the the metal requirements to manufacture the robotic computer will also increase.Ans 2) The formula for calculating the single unit of a product are = Total cost of manufacturing ( FIXED cost + variable cost) / Total no of units produced.
FIXED cost includes = Rent for the plant + lightning expenses + maintenance expences and variable expenses are = raw material use to manufacture robotic computer + Wages of workers skilled as well unskilled + All the manufacturing expenses + MARKETING expenses.
Ans3.The price strategy that is used is cost plus profit strategy where per unit cost is determined and profit proportion is added to get the final price of the product for example Selling price of robotics computer = Total cost + profit margin.
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Determine the costs associated with offering your product.
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-answer all of the questions.
- type answers on a computer. Do not print by hand!
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Identify whether each of the below is a variable or fixed cost. Justify your answer –...
Identify whether each of the below is a variable or
fixed cost. Justify your answer – (30 pts).
Advertisement
Delivery and shipping charges
Employees’ Salaries
Equipment Depreciation
Rent payment of the store
Sales commission
Fixed costs
Variable costs
Referring to figure 1,
a) Explain the difference
between cost-based pricing and value-based pricing
strategies – (10 pts).
b) Provide an example for each
of them – (10 pts).
Figure 1: Value-based pricing versus Cost-based
pricing
Strategy
Cost-based pricing
Value-based pricing
Comparison...
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-answer all of the questions.
- type answers on a computer. Do not print by hand!
You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P 250-40 Q, and your cost function is C (Q) 10 O. Determine the optimal two-part pricing strategy. a. b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per unit profit maximizing price?
You are the...
Identify whether each of the below is a variable or
fixed cost. Justify your answer – (30 pts).
Advertisement
Delivery and shipping charges
Employees’ Salaries
Equipment Depreciation
Rent payment of the store
Sales commission
Fixed costs
Variable costs
Referring to figure 1,
a) Explain the difference
between cost-based pricing and value-based pricing
strategies – (10 pts).
b) Provide an example for each
of them – (10 pts).
Figure 1: Value-based pricing versus Cost-based
pricing
Strategy
Cost-based pricing
Value-based pricing
Comparison...
The East Company manufactures several different products. Unit costs associated with Product ORD105 are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions 2% of sales) Administrative salaries Total 8888 What is the percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost? OA. 82% OB. 77% OC. 71% OD. 83% Click to select your answer EliteDisplay E2211
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $94 Factory overhead $160,000 Selling and admin. exp. Direct labor 34 55,000 Factory overhead 29 Selling and admin. exp. $180 Total Willis Products desires a profit equal to a 20% rate of return on invested assets...
Check my work Exercise 23-12 Product pricing using variable costs LO P6 Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 26,000 units follow. The company targets a profit of $306,000 on this product 5 points Variable Costs per Unit $ 76 Fixed Costs (in total) $676,000 311,000 291,000 Direct materials Overhead Selling Administrative еВook Direct labor 46 Overhead 31 Print Selling 21 References 1. Compute the variable cost per unit....
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