What is the low end of the range of prices

Assignment Help Marketing Management
Reference no: EM131387773

Question: A small manufacturing company with many products will soon begin producing a new product. The new product's per-unit variable costs will equal $3.00. The company's fixed costs are currently $12,000 per month and will not change when this new product is produced. A value-to-the-customer analysis has determined that the value of this new product to the product's target customers is $18. The company's management is considering what price it should set for this new product.

(a) According to the material on the bounds of the typical price, what is the high end and what is the low end of the range of prices that management should be considering? Briefly justify your answer.

(b) If this new product is patented and thus protected against direct competition, where within the range of prices you gave in Part (a) would you recommend the price of this product be set? Again, briefly justify your answer.

Reference no: EM131387773

Questions Cloud

Write a comment about the given post : The geriatric assessment is designed to evaluate and older person's physical health,cognition, functional ability, and mental health. Since elderly patient's takesome prescription and over the counter medications, vitamins and herbal products, thi..
What is the annual operating cash flow : A 12-year project is expected to generate annual sales of $162,565, variable costs of $35,285, and fixed costs of $35,250. The annual depreciation is $23,252 and the tax rate is 38 percent. What is the annual operating cash flow?
Who will prevail in given situation and why : Perfection counterclaimed against Hodges for his failure to deliver the additional two hundred tons. Who will prevail? Why?
What is the total market hhi for first city : Two cities are very similar. First City has five hospitals: two with 130 beds, one with 115 beds, one with 100, and one with 90. Second City has four hospitals: one with 200 beds, one with 180 beds, one with 150 beds, and one with 100 beds. What is t..
What is the low end of the range of prices : According to the material on the bounds of the typical price, what is the high end and what is the low end of the range of prices that management should be considering? Briefly justify your answer
Can rebecca enforce the contract : On April 1, Rebecca tendered the deed to Nancy, who refused to pay Rebecca the agreed purchase price. Rebecca brought an action against Nancy for breach of contract. Can Rebecca enforce the contract?
Write a comment about the given post : Geriatric assessment entails Multidimensional assessment designed to ensure older adults improve health outcome, quality of life, and prevent possible disabilities while reducing nee3eds for hospitalization (Medcom, 2006). These enable them to liv..
Explain should a 1 prevail : A-1 submitted a bill to Jaffe for $1,200 for materials furnished and labor performed up to the time of the destruction of the premises. Jaffe refused to pay the bill, and A-1 now seeks payment from Jaffe. Should A-1 prevail? Explain.
What is the equilibrium wage and rental rate for capital : Townville only produces Kale Pops and Krab Rings. Kale Pops are made using the technology Qkp= min (1/2K, L) and Krab Rings are made using a technology Qkr= min (k, 1/3L). What is the equilibrium wage and rental rate for capital in Townville if the i..

Reviews

Write a Review

Marketing Management Questions & Answers

  Integrated marketing communication

Developing an IMC plan of Amazon that aims to create awareness and knowledge amongst Singaporean  consumers of the ethics involved in buying clothing made from Bangladeshi factories  .

  Multiple choice questions on e-commerce

The assignment in Computer Science or Information Technology is about multiple choice questions, particularly in e-commerce. Questions such as types of e-commerce websites, commercial websites, disintermediation, Platform for Piracy, the data that ca..

  Balanced scorecard for red lobster

The assignment in marketing is about Red Lobster, which is one US and Canada's most loved seafood restaurant. It has hundreds of outlets in US and Canada and it now wants to expand further. The approach adopted by Red Lobster has been discussed in fu..

  Marketing plan - marketing audit, swot and smart report

The assignment in marketing is about preparing a marketing plan. As part of marketing plan, the SWOT analysis, assessing the competitive position, identifying critical competitive issues, marketing objectives, strategy and actions have been suggested..

  Marketing plan

Marketing deals with preparing a marketing plan for either an existing product or a new product. Various aspects about launching a new product into the market are discussed ranging from the industry the product belongs to, goals and vision of the com..

  Yamato corporation analysis - harvard case study

Please refer to the PDF for the Case Study and questions.The case study from Harvard Business School is about Yamato Corporation, a parcel delivery company which provides door to door delivery in Japan.

  Marketing plan - create a new product

The assignment in marketing is about competitive analysis for a new product namely "heated insoles". These heated insoles can be put in shoes and they can protect the wearer's feet by keeping them warm during cold winters.

  Report on digital marketing strategy for a website

Promotion strategies of  the one's own developed website

  Integrated marketing campaign of mccafe

Integrated marketing campaign for McDonald's McCafe. McCafe has been launched in Canada. This is a case study which involves the use of digital marketing and social media marketing apart from regular marketing such as TV and radio. All these more are..

  New product development at adidas

In this paper, the researcher also determines the different kind of practices used by Adidas to manufacture shoes for its customers.

  Managing services in competitive environment

Services can be defined as separately identifiable, intangible activities which provide want-satisfaction when marketed to household consumers and/or industrial users.

  Prepare a marketing plan

A marketing plan is an essential tool for any marketer, providing direction for a brand, product or organization. A marketing plan describes the marketing environment, marketing objectives and marketing strategies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd