Business, 30.11.2019 03:31, xgibson123
You are hired as a product manager at a camping product company that has developed a new lightweight, collapsible drinking cup for backpackers. you are considering two alternative prices for the product - $7.50 or $4.50. research has estimated that at the $7.50 price the first year market will be 200,000 units, plus or minus 20%. at the $4.50 price the first year market is estimated at 600,000 units, plus or minus 30%. in either case, manufacturing costs (variable costs) will be $2.80 per unit and fixed costs for plant and equipment will be $50 thousand. since the product will simply be added to the company’s line, other expenses, such as advertising costs, will be minimal. you estimate $15 thousand at either volume level.
you are trying to decide whether to use a price skimming or penetration strategy. because you have heard that a major competitor is working on a similar unit, you are afraid that you will have very little lead time – a month or two at the most. you have filed for a patent on the product but are not sure that it is patentable. at the same time, you have to introduce the product immediately to be in the market in time for the backpacking season.
question: 1.what are your projected sales and profits at the skimming and penetration prices? 2.what are your breakeven points for the skimming and penetration prices? 3.what decision do you make, skimming or penetration? why? 4.what are your assumptions and considerations that led you to this decision? 5.what additional information would you like to know to make a more informed decision?
Answers: 1
Business, 22.06.2019 02:00, 544620
Answer the following questions using the information below: southwestern college is planning to hold a fund raising banquet at one of the local country clubs. it has two options for the banquet: option one: crestview country club a. fixed rental cost of $1,000 b. $12 per person for food option two: tallgrass country club a. fixed rental cost of $3,000 b. $8.00 per person for food southwestern college has budgeted $1,800 for administrative and marketing expenses. it plans to hire a band which will cost another $800. tickets are expected to be $30 per person. local business supporters will donate any other items required for the event. which option has the lowest breakeven point?
Answers: 1
Business, 22.06.2019 20:10, spicee68003
Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.
Answers: 1
Business, 23.06.2019 03:50, brooke2828
What is inventory turnover? explain the effect of a high inventory turnover during the christmas shopping season.
Answers: 1
You are hired as a product manager at a camping product company that has developed a new lightweight...
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