FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he
can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost.
(a) Compute José's planned selling price.
(b) Is José's price lower than competitors' price?
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute José's planned selling price.
Selling price
E per unit
Required A
Required B
>
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $265 each. Jose
believes he can produce a birdhouse for a total cost of $225 per unit, and he plans a 20% markup on total cost.
(a) Compute José's planned selling price.
(b) Is José's price lower than competitors' price?
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute José's planned selling price.
Seling price
per unit
(Required A
Required B >
PLEASE ANSWER ASAP! THANK YOU!
1. After determining the total product cost of P100.00 per unit, Mr. Abecee the owner, decided to set mark-up of 15% on cost of his product. Determine the final retail price per unit of product. Show your solution.
2. What is the pricing strategy used by Mr. Abecee? Briefly explain this pricing strategy.
3. How many units must be sold for Mr. Abecee to Break-even if Fixed Cost isPhp 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is Php.5.00.
4. Differentiate geographical pricing from psychological pricing.
5. If you are to put -up a small start-up business with a starting capital of P50,000 ...a) What business will it be? andb) What will be your best pricing strategy? Justify.
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