Reference no: EM132895031

You have taken up a new job as the marketing manager of a local company. The new CEO wants to understand the profitability of the product and the profitability and pricing structure of the customer market. She wants to know where the market price is (relative to competitors, what is our position). She is also interested in the impact of raising and lowering prices on the company's profitability.Your company is a soap manufacturer, and the average retail prices of your main competitors are as follows.

1. What is the average price of a bar of soap?

2. What is the price premium paid by the customer when buying Irish Spring?

3. What is the price premium paid by the customer when purchasing the Lever 2000?

4. Your boss heard that the retailer will reduce their price on Zest by $0.85. The retailer's variable cost of Zest is $3.12. How many units will the retailer have to sell to get the same amount of profit?

5. Your boss heard that other retailers will increase the prices of all soap brands by 8%. After the retailer increased the prices of all soap brands by 8%, what was the average price of soap?

6. Your boss heard that another retailer will increase the price of all soaps by 8%. The variable cost of the pigeon retailer is $3.62. In order to obtain the same amount of profit, how many more units the retailer must sell.

7. After the retailer increases the price by 8%, what is the price premium paid by the customer to purchase the ivory?