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Pricing Analysis Paper 1 Week 8 Pricing Analysis Paper Brian Newman Business 626 Dr. Mohammed Nadeem June 4th, 2012 Pricing Analysis Paper 2 Table of Contents Executive Summary………………………………………………………………………………………………………………..3 First Data Set……………………………………………………………………………………………………….…………………4 Second Data Set………………………………………………………………………………………………….………………….6 Future Scenarios…………………………………………………………………………………………………………………….7 Summary………………………………………………………………………………………………………………………………..8 Referances…………………………………………………………………………………………………………………………………………..9 Pricing Analysis Paper 3 Executive Summary BCN Corporation has launched the first ever to market pre-packaged performance management recognition and reinforcement system for line level…show more content…
Optimal unit count for profit does not change at any point of scale from $10-120,000 remaining at 12,000 units. Revenue hovers at or near $ 351,000 along all changes in the fixed cost spectrum; however it is a product of greater total unit count at or near 13,250 with a negative effect to profit though once crossing the 12,000 unit threshold. Elasticity remains constant regardless of fixed cost change at 1.85. Revenue @ $10,000 FC Revenue @ $120,000FC Profit @ $10,000 FC Profit @ $120,00FC Pricing Analysis Paper 7 Variable cost changes along a $1 to $10 dollar scale swing from $27 to $31.50 in profit maximizing point. Total optimized profit ranges from $278,000 down to $171,125 when the variable cost changes while revenue remains stable hovering around $348,000. Elasticity swings from 1.019 to 1.436 and optimal unit count falls from 13,000 to 10,750 when the variable cost rises. Revenue @ $1 VC Revenue @ $10 VC Profit @ $1 VC Profit @ $10 VC Future Scenarios Scenario # 1 continues optimal peak profit unit count at 12,000 yielding $228,500 in profit. Peak revenue climbs to $383,500 at 13,000 units but net income falls. Profit maximizing
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