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Evaluation Of A Company On The Market At A Low Initial Price Essay

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Alternatively, Printworx could introduce its products into the market at a low initial price. This will deter potential competitors from entering into the market and will enable Printworx to penetrate the market sufficiently and build a huge client base due to its low prices. Considering competition already exists Printworx will be forced to set its selling price as close to its competitors as possible to obtain its client base. If mass production is possible Printworx could produce the products on a large scale, thus reducing its marginal costs per unit. This would enable them to reduce their selling price per unit even further which if the quality of the product is good will attract a higher demand. Over time Printworx will be able to dominate the market and have the lowest costs in the industry.

Calculation of sales price per unit:
Contribution per unit less variable costs per unit = sales per unit

The purpose of the following report is to make senior management aware of how much is being spent on quality related costs. There are four categories of cost and the report below will analyse these costs of quality for easier understanding so that quality costs can be reduced more sensibly. The following four categories of cost and examples will be presented in the cost of quality report below:
Costs of conformance:
Prevention Costs: These costs are incurred prior to or during production in order to prevent or minimize products and serviced of a low standard and quality

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