"Advise the Pricing practices or policies to be adapted for each of the items discussed below with proper reasons" A.New product launch with massive production B.New model small car for the market C.New launch of a product, but not for the market
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"Advise the Pricing practices or policies to be adapted for each of the items discussed below with proper reasons"
A.New product launch with massive production
B.New model small car for the market
C.New launch of a product, but not for the market
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- "Advise the Pricing practices or policies to be adapted for each of the items discussed below with proper reasons" A.Car rentals, Telecommunications B.Airline ticket prices for Business & normal customers C.New product launch with massive production.Mention any four types of pricing strategies and classify the below items the appropriate pricing policy to be adopted: 1.'A' is a new product for the company and for the market and large scale production 2.A perishable item, with more than 80% of its shelf life overa) Compare and contrast variable cost-plus pricing and target pricing, and indicate the circumstances in which each might be appropriate. b) Compute the selling price based on the compay’s pricing policy and indicate whether the customer’s maximum price is consistent with the company’s pricing policy. c) Assume that further tests have confirmed the product’s useful life, and that SA Berhad wishes to maximise profits by reducing costs. Indicate techniques which could be used to achieve a reduction in the product cost. d) Define Business Process Re-engineering (BPR).
- Can you provide samples/examples of tasks for developing the costing and profitability model for a new product? Should include the following: o A table showing the list of the parameters used in your model o A breakdown of the expected production costs and profitability o Calculation of the NPV of expected sales/ profitability o A sensitivity analysis that accounts for changes in any three (3) parameters of your model. o At least two trade-off rules you developed for your product developmentYour team is conducting a CVP analysis for a new product. Different sales projections have different incomes. One member suggests picking numbers yielding favorable income because any estimate is “as good as any other.” Another member suggests dropping unfavorable data points for cost estimation. What do you do?Looking for the break-even point from the information provided. The Smiths need to develop an analysis of their breakeven point for the plastic display case based on sales of the product directly to the consumer as well as through retailers. If the product were sold to retailers, the price would have to provide retailers with an adequate markup. Exhibit C7.4 presents the expected cost structure for the Unique Display Cases display case developed by their accountant. Based on competitive prices, the Smiths expected to offer their product in direct to consumer sales for $24.99 plus $2.99 for shipping and handling. The price to retailers would have to be negotiated but would be 30–40% less to allow an adequate markup for the retail firms. The production cost of $7.50 was based on a production run of 5000 units in one color. At 10,000 or more units, production cost would drop to $5.75 per unit. The company that would produce the plastic unit had production capacity of 25,000 units a year.…
- Which of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.Maximus Steel plans to introduce one of three new products code-named: Wren, Hawk, and Nightingale. The marketing department indicated that the success of any product depends on the market conditions (Favorable, Neutral, or Unfavorable). The profit the company will earn also depends on the market conditions. The table below shows the probability estimated for each market condition and the profits Maximus Steel will realize within those conditions: Product Code Market Conditions Favorable P = 0.2 Neutral P = 0.7 Unfavorable P = 0.1 Wren $120,000 $70,000 ($30,000) Hawk $60,000 $40,000 $20,000 Nightingale $35,000 $30,000 $30,000 Part 1 Instructions: Compute the expected value for each alternative. What is the best option for the company?State the appropriate Pricing policy to be adopted: (i) A perishable item, with more than 80% of its shelf life over (ii) 'A' is a new product for the company and for the market and large scale production (iii) New version of mobile phone was launched by a existing mobile phone manufacturer where the manufacturer is financially strong.
- Planning and control decisions. Gregor Company makes and sells brooms and mops. It takes the following actions, not necessarily in the order given. For each action, state whether it is a planning decision or a control decision. Gregor asks its advertising team to develop fresh advertisements to market its newest product. Gregor calculates customer satisfaction scores after introducing its newest product. Gregor compares costs it actually incurred with costs it expected to incur for the production of the new product. Gregor’s design team proposes a new product to compete directly with the Swiffer. Gregor estimates the costs it will incur to distribute 30,000 units of the new product in the first quarter of next fiscal year.Consider the following series of independentsituations in which a firm is about to make a strategic decision.Decisionsa. A running shoe manufacturer is weighing whether to purchase leather from a cheaper supplier in orderto compete with lower priced competitors.b. An office supply store is considering adding a delivery service that its competitors do not have.c. A regional retailer is deciding whether to install self-check-out counters. This technology will reducethe number of check-out clerks required in the store.d. A local florist is considering hiring a horticulture specialist to help customers with gardening questions.1. For each decision, state whether the company is following a cost leadership or a product differentiationstrategy.2. For each decision, discuss what information the managerial accountant can provide about the sourceof competitive advantage for these firms.The remaining questions relate to the described scenario below. Please read the scenario carefully and answer the following questions: After an in-depth market analysis, Brand Z identifies that the objective value of their ready-to-launch product is equivalent to $80. Based on this assessment the company plans to set the product’s retail price at $79.99. But after a quick focus group, the company realizes that the consumers do not fully recognize or appreciate the product’s true worth, and report a willingness to pay $60 (max.) for the product. 9. If the company holds a value-based approach to pricing, what would they do about the identified discrepancy between objective value and perceived value (answer in one sentence)? 10. If the company holds a demand-based approach to pricing, what would they do about the identified discrepancy between objective value and perceived value? 11. If the cost of goods sold of the product is $45 and the company intends to sell via…
