Pricing Problems

NOTE: We do not resell pre-written papers. Upon ordering a paper, we custom-write an original paper exclusively for you. Please proceed and order an original paper to enjoy top grades.


Order a Similar Paper Order a Different Paper

Pricing Problems attached. Please show all work!

  • You have fixed costs allocated to the production of the pasta sauce of $4,000,000. Variable costs are $2.35 per jar of sauce. The MSRP for the sauce is $8.50 per jar. You are selling your product to retailers for $3.50 per jar.
  • Assume a retailer buys your pasta sauce for $3.50 per jar. His business requires that he prices gourmet products such as the pasta sauce with a with a 125% markup on cost. What is the least he can sell the pasta sauce for and have that markup percentage?
  • An appliance retailer knows that to break even and make a profit he needs to have a minimum retailer margin (also referred to as a contribution margin or gross margin) of at least 55% If he is to sell a television for the manufacturer’s suggested retail price of $649.99, what is the most he can pay the manufacturer for the TV and maintain his margin?
  • An industrial paper distributor salesperson is developing a quote for a year’s contract to supply a customer with paper towels. His cost for each case of towels is $36.00. His firm requires that he have a 30 percent margin so he is using a mark-up on selling price calculation to price the towels. What will his quote be per case of towels if he uses a 30% mark-up on selling price?
  • How many jars of sauce must you sell to break even?
  • How much must you sell in dollars to break even?
  • How many jars of sauce must you sell to break even plus make a profit of $700,000.
  • What if the sauce is offered to consumers in packs of 6 jars with an MSRP of $45.00. Four of the packs of 6 jars are in a case. You only sell whole cases to your retailers. With this being said, how many cases, packs, and jars must you sell to break even?

Bonus for extra points

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Do you need help with an assignment? We work for the best interests of our clients and maintain professionalism to offer brilliant writing services in most of academic fields—ranging from nursing, philosophy, psychology, biology, finance, accounting, criminal justice, mathematics, computer science, among others.


Order a Similar Paper Order a Different Paper