Sample Essay on:
Pricing the Embers Charcoal Starter

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Essay / Research Paper Abstract

This 6 page paper uses information provided by the student to set a price for a new product. The paper looks at the cost of producing the goods and the market, considers the mark up that retailers want to add and considers the competition in order to reach a price. All calculations are shown. The bibliography cites 3 sources.

Page Count:

6 pages (~225 words per page)

File: TS14_TEembers.rtf

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Unformatted sample text from the term paper:

It is only after this is calculated that a sale price can be considered which will allow a suitable breakeven point and ensure that profits made will meet the satisfaction of the business owners. In the case of the Embers Charcoal Starter the input prices have been, in addition to this there are also overhead costs which will need to be met. Both of the charcoal starters appear to have similar costs so the costing will be calculated in the same basis. However, there are also some potential variables such the shipping costs. In addition to this the commission paid to agents selling the products is a percentage of the final selling price. The first stage is shown figures 1; here we are calculating the cost of each unit for inclusion on the cost per unit calculation. Figure one calculates the shipping cost per unit. There are two columns, the first assumes all orders are shipped in small lots, where each case of 12 units costs $6 to ship, the second assumes a mixture of orders taking the average of the two prices the $6 per case of 12 for the small orders and the $3 per case for large orders. In reality neither of these are likely to be correct, but with the higher cost calculation pricing can ensure all costs are covered, with the average cost of shipping calculation a realistic potential cost is shown. The cost of shipping per unit is shown in figure 1 Figure 1 Cost of shipping per unit Shipping cost per case Units per case Shipping per unit Small shipments 6.00 12 0.50 Large shipping 3.00 12 0.25 Average cost 0.38 Now we can look at the direct cost per unit. Figure 2 Direct costs per unit ...

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