Answer:
1. Particulars Super premium Premium Economy
Material cost $16 $12 $10
Indirect cost (40000/10000) <u>$4 </u> <u>$4 </u> <u>$4</u>
Total cost $20 $16 $14
Profit (100% of total cost) <u>$20 </u> <u>$16 </u> <u>$14</u>
Selling price <u>$40</u> <u>$32 </u> <u>$28</u>
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2. Yes, the price calculated in part A takes into account what customers are willing to pay. This can be said because the company has the policy of adding 100% to the total cost. This means that the company knows that customers will be willing to pay that much amount.
<span>One reason taco bell raised its prices was the result of an increase in costs.</span>
Customer value proposition refers to the assortment of buyer-specific benefits that a seller provides to a buyer when selling a product.
More about the Customer value proposition:
A customer value proposition (CVP) in marketing is the total of the advantages a vendor guarantees a customer will receive in exchange for the related payment (or other value-transfer).
A company can create value in their product or service while marketing to potential customers by using a customer value proposition. This is frequently determined by totaling the benefits that vendors offer to their customers.
Similar to the USP, this is a succinct claim intended to persuade buyers that a specific good or service will be more valuable or better able to address their issue than those offered by competitors.
Learn more about the Customer value proposition:
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Answer
The answer and procedures of the exercise are attached in image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
