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vlabodo [156]
3 years ago
6

Factors affecting pricing decision

Business
1 answer:
xxMikexx [17]3 years ago
8 0
- the main consumers

- the supply available

- society

- the value of money

- inflation

please vote my answer branliest! Thanks .
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3 years ago
Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black an
Nataly [62]

1. The break-even points in sales units are computed as follows:

Break-even point (in units) = Direct fixed cost/contribution margin per unit

Regular model = 20,000 units ($1,200,000/$60)

Deluxe model = 3,529 units ($960,000/$272)

2. The Alo Company's Sales revenue to break-even, company-wide, is computed as follows:

<u>Sales Revenue at break-even point:</u>

= Fixed costs/Contribution margin ratio

= $3,660,800/40%

= $9,152,000

Data and Calculations:

                                         Regular Model   Deluxe Model           Total

Expected sales quantity             90,000               18,000             108,000

Sales                                    $13,500,000     $12,240,000     $25,740,000

Less: Variable costs               8,100,000         7,344,000        15,444,000

Contribution margin           $5,400,000       $4,896,000     $10,296,000

Less: Direct fixed costs         1,200,000            960,000         2,160,000

Segment margin                $4,200,000       $3,936,000       $8,136,000

Less:Common fixed costs                                                         1,500,800

Operating income                                                                  $6,635,200

Selling price per unit                  $150                   $680 ($12,240,000/18,000)

Variable costs per unit                $90                   $408 ($7,344,000/18,000)

Contribution margin                    $60                   $272 ($680 - $408)

Contribution margin ratio for the company = 40% ($10,296,000/$25,740,000 x 100)

Company total fixed costs = $3,660,800 ($2,160,000 + $1,500,800)

Learn more: brainly.com/question/17173792

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IrinaVladis [17]

A scored at the mean the average 12-year old

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_____ reflects performance in brief, special circumstances that demand a person's best effort.
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What would be a good business to start with a friend?<br> (Explanation not needed.)
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