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Essay / Research Paper Abstract
This 6 page paper looks at a case study supplied by the student. A company has a new range of charcoal burners and needs to determine the wholesale price with reference to specific mark up for the retail and the mail order market. The paper shows the causation for the break even point at the determined price level. The bibliography cites 2 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEalma2.rtf
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Unformatted sample text from the term paper:
the firm is competing. With some competitors and a fairly low pricing structure the strategy used to determine the price will be one that looks at the market and
seeks to use an approach that helps the product to be positioned competitively. For this we need to look at the way there can be a market up, that will
still give the retailers and the mail order companies that will be selling the burners sufficient market up to make the product attractive and still sell at levels that will
make Alma a good profit. For this we will argue that the wholesale price should be $7.10. This will place the company in a competitive position, and allow for a
market up of 40% on the retail sales and 60% for the mail order sales. The prices will be above some of the competition, but below a great deal, and
as the sales are monitored then there may be adjustments made to maximise profit and sale for both the company and the retailers. The first stage at considering the
break even point and the way the pricing should take place is shown in figure 1 as we need to look at the costs per unit. The calculation needs to
start by looking at the cost per unit, but for the post and packaging figures have been given are per case of 12. In this section we need to calculate
the cost of each unit for inclusion on the cost per unit calculation. Figure one calculates the shipping cost per unit. In this calculation there are two columns, the first
column is for all orders are to be sent in small lots, where each case of 12 units costs $6, the second presumes a mixture of orders taking the average
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