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2 years ago

Read the following examples. Determine the type of differential or new-product pricing used as the pricing strategy.

Business

1 answer:

Mnenie [13.5K]2 years ago

5 0

pricing used as the pricing strategy

<h3>What is pricing strategy?</h3>

When selling a product or service, a company can employ a number of pricing strategies. Senior executives must first identify the company's pricing position, pricing segment, pricing capability, and competitive pricing reaction strategy in order to determine the most effective pricing strategy for the company.

Depending on the industry and business model, value-based, competition-based, cost-plus, and dynamic pricing are all common pricing models.

A pricing strategy is a model or method for determining the most competitive price for a product or service. It assists you in determining prices that maximize profits and shareholder value while taking consumer and market demand into account.

To know more about pricing strategy follow the link:

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3 years ago

Read 2 more answers

Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.9

exis [7]

Answer:

15.54 %

Explanation:

The Internal Rate of Return (IRR) is the Interest rate that will make the present value of Cash Flows equal to the price or initial investment.

Step 1

First determine the summary of Cash Flow of the project.

The Projects` cash flows are as follows :

Year 0 = $1,920,000

Year 1 = $580,127.00

Year 2 = $580,127.00

Year 3 = $580,127.00

Year 4 = $580,127.00

Year 5 = $580,127.00

Step 2

Calculate the IRR.

From this point i will use a Financial Calculator. The Function to use is the CFj for uneven Cash Flows.

($1,920,000) CFj

$580,127.00 CFj

Shift IRR/YR 15.5415 or 15.54 %

Conclusion :

The internal rate of return for the J-Mix 2000 is 15.54 %

5 0

3 years ago

Whole-life insurance has a cash value for the insured person if he decides to stop paying premiums and cash the policy in.

Novosadov [1.4K]

Whole-life insurance has a cash value for the insured person if he decides to stop paying premiums and cash the policy in. This statement is a fact (true). If the insured person gives up his policy he will receive the cash value not the face amount. If he dies, his beneficiaries will receive the face amount.

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3 years ago

The method that calculates the number of years needed for the proposed capital acquisition to repay its original cost out of fut

elixir [45]

I think payback method

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3 years ago

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $50

astra-53 [7]

Answer:

If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.

Explanation:

To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).

$AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}$

$\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%$

We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.

4 0

4 years ago