The blueray ltd produces a range of products the firm uses

Assignment Help Marketing Management

Reference no: EM13371428

The Blueray Ltd produces a range of products. The firm uses full manufacturing cost plus pricing to determine the selling price of products. An enquiry for a batch of 500 units of product X1A has been received. The estimated costs and production times for the batch are as follows:

Product X	Product X1A 500 units

Direct Costs
Materials			£20,000
Labour Dept A	300 hours	£8.00 per hour
Labour Dept B	400 hours	£9.00 per hour
Factory Overheads*
Dept A		£15 per labour hour
Dept B		£10 per labour hour

Recovery of Sales and Administrative overhead Costs	40% is added to the total manufacturing costs

* Recovery method - Direct Labour Hours for both departments. All factory overheads are fixed costs.

The firm's normal profit margin is 15% of the selling price.

Required.

a. i. Calculate the selling price per unit.

ii. The net profit per unit.

iii. The total profit for the batch.

b. For product X1A calculate the markup required to give the same selling price per unit as you have calculated in a(i) if the firm uses marginal cost plus pricing

c. Cost plus pricing suffers from a circular argument problem. Explain what the circular argument problem is and critically evaluate the role marketing plays in resolving this problem.

Reference no: EM13371428

Questions Cloud

Conceptual questionswhat is the difference between : conceptual questionswhat is the difference between descriptive and inferential statistics?what are the five

Produce a report based on a scenario covering a range of : produce a report based on a scenario covering a range of learning outcomes. demonstrate course concepts and ideas

Find the correlation between anca and the clinical : find the correlation between anca and the clinical manifestations k l c gi msk n ent s. nbspwe want to find out which

1 what are some of the possible biases and points of error : 1 what are some of the possible biases and points of error that may arise in team communication systems? in addition to

The blueray ltd produces a range of products the firm uses : the blueray ltd produces a range of products. the firm uses full manufacturing cost plus pricing to determine the

1nbsp construct a two member sample from the population 1 3 : 1nbsp construct a two member sample from the population 1 3 5 7 without replacement and make a probability sampling

1 the profitability of the leading cola syrup manufacturers : 1. the profitability of the leading cola syrup manufacturers pepsico and coca-colaand of the bottlers in the cola

I truefalse1nbsp a b if and only if b isin a and a isin : i. truefalse1.nbsp a b if and only if b isin a and a isin b.2.nbsp a cap b ? c a ? b cap a ? c3.nbsp ac c nbsp

A flat field with a standard surface of water which needs : a flat field with a standard surface of water which needs to get to 50000 people by means of a water treatment facility

User Account

All Pages