Describe what you are selling (1 item only):What is the price you will sell at to sustomer:How will you explain to potential customers WHY they should buy your product?If your total costs to run the company is $5,000 per month, how many do you have to sell each monthto cover your costs? Show your calculation!Do you think this is a realistic number to achieve each month? Explain your answer.In case sales go slower than expected, come up with a volume discount offer for customers anddescribe how it will work in the box below:(for example if you buy 5 items instead of 1, you will give customer a 10% discount).

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Answered: What is the price you will sell at to…

Business

Management

What is the price you will sell at to customer:

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Some high-fashion retailers, notably H&M and Zara, sell what some call“disposable fashion”—apparel priced so reasonably low that it can bedisposed of after just a few wearings. Here is your dilemma: You havean important job interview and need a new suit. You can buy the suit atone of these stores for $129 or at Brooks Brothers for $500. Of course,the Brooks Brothers suit is of higher quality and will therefore lastlonger. How would you use the two value-based approaches describedin this chapter to determine which suit to buy?
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