Questions One Cost-plus pricing is a very common pricing method because a firm calculates average total cost and then mark up the price to yield a target rate of return (Brickley‚ Smith‚ & Zimmerman‚ 2009‚ p. 211). It can be very beneficial for a firm to use this method because it is like a guarantee on the rate of return. In this case‚ Bhagat benefits from the cost-plus pricing because the newly decided raise will not affect their bottom line. Their contract specifically states that labor is
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TerraCog Case Study Background TerraCog‚ Inc. is a privately held company specializing in high quality GPS and fishing sonar equipment. Although TerraCog was not always first to market with their new products‚ they were known for surpassing their competitors in addressing consumer needs because of their innovation in creating exceptional product design and functionality. In 2006‚ TerraCog’s competitor‚ Posthaste‚ launched BirdsI‚ the only handheld GPS with satellite imagery. Caught off guard
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In terms of application‚ these models are similar because they both focus on two strategies namely cost leadership and differentiation. That is competition advantage is attained by a firm basically by how it has positioned itself in terms of its prices and perceived product value. With regards to differences between the two models‚ the Porter’s generic strategies also focus on market segmentation. In that a firm gains competitive advantage by focusing on specific customers‚ the Strategy clock
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Question 1 Is there a way to estimate the cost of services and product to customers such that Stuart’s Branded Foods can be competitive in their market? Use the illustrations of the two customers to demonstrate your approach. What would be the selling price per kit or per cup for each customer? The costing approach should be based on per Transaction Basis rather than on per kit or per pound basis because of the following reasons: • Current costs are allocated on a per kit basis‚ which is not an
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bakri #1100826 Ibrahim Q1.consider and discuss the impact of the rising petrol on as many other products and services as possible Increases on gasoline prices definitely affect the consumer in different aspects. Public transportation is one of the most obvious services that will be affected with sky high gasoline prices. Cab drivers and transit centers will increase their rates and consumers might still feel that it is cheaper to ride the bus then to drive their own vehicle. People will
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spending to capture more charcoal market share. They should also continue with promotional spending. Kingsford should not increase the prices of their products on the other hand even though it has a superior product when compared to its’ competitors‚ since it was due to the increase of prices by their competitors that drove more market share toward Kingsford. Raising prices is a great way to earn short term profits‚ but it is not sustainable in the long term. It will simply drive customers away to make
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develop fakes and replicas and try to pass them off as authentic pieces at a much lower price then that of Fe’Nix del Sur. With these lowered market prices Fe’nix of course struggles to be able to compete with their 100 percent pieces. Not only is the process of finding these authentic artifacts expensive but also having them authenticated tends to also be pricey for the company‚ which in turn causes the prices on their products to increase. The introduction of all of the fakes and replicas has lowered
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of Hurricane Charley and price gouging. Being a victim of Katrina‚ I understand what it is like to have to deal with price gouging after hurricanes. When Sandel mentions the exuberant pries after Hurricane Charley‚ I could relate. After a hurricane‚ you will pay just about anything to get your house fixed. Therefore‚ I oppose price gouging because I have been in the position of the buyer‚ and I know what it feels like to be obliged to pay inflated prices. I believe price gouging is injust. I feel
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Furthermore‚ this pill is too higher price than research cost and expensive. It said only one peel price is $10‚000. However‚ patients have to take this pill for 20 weeks. Except rich people‚ serious patients cannot get it and it means do not take people who do not have money. Actually‚ if someone who has a lot of money suffers from lung cancer‚ they might try to treat‚ because medical treatment has developed much and it is still developing. If ABM sell the pill high price to earn maximize profits‚ the
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maximize its profits‚ what prices (or tariffs)‚ TH and TL (in €)‚ should Castorama choose for each bundle? What are the corresponding bundles sizes‚ QH and QL? To simplify your analysis assume that the cost of each bundle is zero. 2. The managers of the Nice Philharmonic Orchestra can identify two different groups of customers‚ students and non-students. Weekly student demand is Q = 10 – P‚ and non-student demand is Q = 100 – P. Marginal costs are zero. a. Suppose the NPO price discriminated according
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