CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 6A, Problem 6A.13P
1.
To determine
Introduction: The price of the closest competitor or substitute in the market refers to the reference value.
The reference value that MW should consider when setting the price of a full-page ad in its magazine.
2.
To determine
Introduction: The net benefits or values which are offered or delivered to customers by products or services above competitors or substitute products refer to the differentiation value.
The differentiation value offered by a full-page ad placed in MW magazine.
3.
To determine
Introduction: Economic Value to the Customer (EVC) represents that a customer is willing to buy a product or service only if the value of a chosen product outweighs the value of the other substitutes or alternatives.
The economic value to the customer (EVC) of a full-page ad in MW magazine
4.
To determine
Introduction: The price of the closest competitor or substitute in the market refers to the reference value.
The range of possible prices that MW should consider when setting a price for a full-page ad.
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Calculating a Target Cost
RU Listening manufactures cell phones and is developing a new model with a feature (targeted at parents of teens) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 a.m. The new phone model has a target price of $370. Management requires a 10% profit on new product revenues.
Required:
If required, round to the nearest dollar.
1. Calculate the amount of desired profit.$fill in the blank 1
2. Calculate the target cost.$fill in the blank 2
Cleveland Foods Data Note: You can download
the Excel file containing Cleveland Foods' data
by clicking the above link and perform the
necessary calculations for answering the
upcoming questions. Question 12 (1 point) □
What is the unit contribution of BlueLiq,
considering the given information? $0.70 $2.50 $
1.00 $1.70
$
$
J
0
20% Retail Margin
2.50 Price to consumers (Retail Price)
15% Wholesale Margin
2.00 Price to retailers (Wholesale Price)
$
1.70 Price to Wholesalers
Variable Costs
$ 0.70 per unit
Fixed Costs
Variable Manufacturing Costs
$300,000 annual
$200,000 Corporate Overhead
$250,000 Marketing and Advertising
$750,000 Total Fixed Costs
Cleveland Foods Data
Fixed Manufacturing Costs
Note: You can download the Excel file containing Cleveland Foods' data by clicking
the above link and perform the necessary calculations for answering the upcoming
questions.
Question 11 (1 point).
Listen
4
What is the price at which Cleveland Foods sells BlueLiq to wholesalers?
$1.70
$2.50
$1.00
Subject: pricing strategies
The Flower glance shop decided to implement new strategy to increase their flower business, and to ensure their quality and services. These strategies associated with the increase of variable cost from P10.50 to P15.50 and price will rise the price from P25.75 to P30.50. If the base sales level for the restaurant is 600 entrées per week, then the breakeven level of entrée sales that the managers should be considering can be
calculated from the GBE formula will be?
Chapter 6A Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
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