Differences Between Phc And M And Modal

6. How does the current reimbursement level of $140,000 per case affect a decision to use or not use marginal cost pricing? Does the amount of excess capacity affect the decision? Why?

The purpose of this briefing note is to provide recommendations for Metapath Software Corp. (“Metapath”) on its financing offers received in September 1997.

The first issue is revenue enhancement - to generate positive cash flow. Due to competitive pressures and the general inertia potential customers have toward becoming subscribers, we cannot necessarily increase our subscription fees. We need to create additional revenue streams from what we already have and do. A quick analysis of our financials will suggest the urgency with which we

On one hand, acknowledging to their request could seriously affect Johnson & Johnson’s current pricing strategy by lowering it tremendously, and on the other, a decline to acquiesce to their requests could mean the loss of thirty percent of their total sales from one day to the next.

In this case, vendor-specific objective evidence of fair value is limited to the price charged when the same element is sold separately. Of the $12,000 Feb 1 agreement, $10,286 will be allocated to the Volcano System and $1,714 will be allocated to the PCS. The portion of the fee allocated to post-contract customer support shall be recognized as revenue ratably over the term of the post-contract customer support arrangement, because the post-contract customer support services are assumed to be provided ratably (PCS 985-605-25-67).

iii. The three launch payments fit the before stated criteria of substantive payments. The contract signing payment and negotiation payment do fit the criteria because these payments are not proportionate to the vendor’s performance, do not relate solely to past performances, and are not “reasonable relative” to all of the deliverables and payment terms.

All pricing decisions the team took are recorded in detail in appendix A, B and C. A summary of the same is presented in figure 1 below. Decisions were made with an informed understanding of the elasticity of demand, fleet utilisation, the gross profit, the contribution, the net profit, seasonal demand changes, the competitors pricing decisions and the context of the scenario.

To be pro-active in negotiating and to save the contract, we decided to appoint a Quality Control Panel. This panel would evaluate claims of deliverable defects and determine remedies, upload daily project updates on Spans extranet for authorized C-S personnel to review, and invite a C-S project manager to serve at Span Systems to serve in a quality control capacity. Mr. Thur did not want to appoint a Quality Control Panel but agreed to allow a C-S Project Manager to serve at Span Systems at the cost of C-S, and agreed that the uploading of project data will be beneficial. These decisions saved our contract in with C-S in January and there is a good chance we will be taking on the larger e-CRM contract. To solidify our future relationship with C-S, it was necessary to make amendments to the already existing contract:

Pricing is a relevant issue in procurement at all levels. Individuals purchasing the commodities of an organization should receive clarity on pricing. There is confusion in this

Part A - After requirements, time constraints, and assumptions are established, fixed costs of MGOA and

Clearwater Technologies’ problem is that end-user pricing for a capacity upgrade to the QTX server needed to be agreed upon in the upcoming meeting. Finance wants to increase revenue, sales wants to keep prices fair and management wants prices to stay within the margin model.

Now that the initial startup phase of our company is complete, our team of Analysts has determined what we have deemed reasonable costs, considering that our definition of “reasonable” aligns with yours. In order to defend our stance on what we feel is reasonable, we have considered the nature of costs, such as air travel for business meetings and the use of our high quality materials, by researching the market for affordable, high-quality materials and have put standards in place to keep air travel valid for these government contracts. With the understanding that although the nature of the cost may be considered acceptable, the amount of the cost may not meet standards when it comes to costs defined as “reasonable” (Murphy, John Edward; Guide to Contract Pricing, pg. 47). With this in mind, we continue to research the market to find adequate material at a much lower cost. We have used this data to create what we feel is a cost that would not and should not exceed what any prudent person would pay in a competitive business environment. We are aware of the competition and have made it a strong incentive of ours to save on costs for the items that we are providing to you. Allowability of our costs is guided by the 52 generally applicable cost principles that are based on specific laws and policies (Murphy, John Edward; Guide to Contract

Span needs to carefully select which items it needs to negotiate fiercely and which ones it needs to concede. There must be balance; Span has to successfully renegotiate the current contract without the perception of being weak.

Perhaps one of the most difficult managerial decisions in the 21st century is the decision to make a decision. Analysis paralysis, endless meetings, and corporate structure have made it painstakingly difficult to come to any real conclusions. So when the Chief Financial Officer, Bruce Berman, of Bloomindale’s was tasked with decision to implement ProfitLogic’s Pricing Optimization (PO) system, he called upon Daniel Gabbay, an analyst in the finance division, to make sense of the numbers and guide his decision making process. Berman was considering implementing a PO system to quantify the markdown

Although the overall assessment was satisfactory, there is room for improvement. In general, we can say that the system client-server-device communication worked properly.