What is the reference price for the new product

Assignment Help Operation Management
Reference no: EM13756604

A competitor sells heavy machinery priced at $14,000. Your firm has been working to enter the heavy machinery market and has developed a new product with a marginal cost of $8,500. Your firm’s new machine is superior to its competitors in some ways but inferior in others. Its speed is limited which reduces the value to customers by $1,000 per engine. However, it requires less maintenance delivering labor saving of $3,500 per engine.

What is the reference price for the New Product?

What is the differential value of the New Product in comparison to Old Product?

What is the total value of New Product?

What range would you suggest to marketing for pricing New Product?

Reference no: EM13756604

Questions Cloud

Buying or selling long-term treasury bonds : The Fed can change the money supply by buying or selling long-term Treasury bonds. Purchasing long-term securities is commonly called
Learning activity-what leaders really do : John Kotter in his article “What Leaders Really Do" makes the following statement " Managers promote stability while Leaders press for change, and only organizations that embrace both sides of the contradiction can thrive in turbulent times."
What is the effective annual rate of interest : A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $50,000, you can..
New privacy issues related to cyberspace : Analyze personal privacy issues related to various personal and business-related cybersecurity scenarios
What is the reference price for the new product : A competitor sells heavy machinery priced at $14,000. Your firm has been working to enter the heavy machinery market and has developed a new product with a marginal cost of $8,500. What is the reference price for the New Product? What is the differen..
Reflective paper based on your experience : Write a Reflective Paper based on your experience and the feedback you received on your Information Technology
What is the reference price for improved product : Old Product is sold at $5 and Improved Product delivers $2 more in value to customers than Old Product. Improved Product cost $3 per unit to make. What is the reference price for Improved Product? What is the differential value of Improved Product in..
Challenges globalization presents to trade unions : Describe the challenges globalization presents to trade unions and how trade unions should respond to these challenges.
Which of the above has the greatest impact to profitability : Assume that a firm produces a consumer product at a variable cost of $7.25 and has fixed cost of $75,000 per month. Currently the firm sells 14,000 units per month priced at $14 per unit. Which of the above has the greatest impact to profitability?

Reviews

Write a Review

Operation Management Questions & Answers

  Computing the maximized profit

Riverside oil company in eastern Kentucky produces 3 different grades of gasoline. They are regular, premium, and supreme grades. Each barrel of regular grade sells for $82 while premium grade sells for $88 per barrel and supreme grade sells for $89 ..

  Which method is best for performing price analysis

Which method is best for performing price analysis in the widest variety of situations and explain your rationale.

  Explain the firms long record of high performance

Does Nucor have a source of sustainable competitive advantage? If so, identify it and justify that it meets criteria for SCA. If not, how do you explain the firm's long record of high performance?

  The specific event or issue which drove it toward embarking

1000- word all new content at least 2 referencesdo an internet search supported with references and in-text citations

  Strategies for organization to increase employee motivation

Create a 6 - 8 slide Microsoft PowerPoint presentation analyze and interpret how employee motivation affects organizational behavior as well as three strategies an organization can do to increase employee motivation.

  Illustrate what general steps should hank follow in setting

Illustrate what are causes of quality problem on Greasex lines. Display your answer on a fishbone diagram. Illustrate what General steps should Hank follow in setting up a continuous improvement program for company. Illustrate what problem will he..

  Determining the optimum performance of this major hmo

How can the major HMO management be used to support changes within the industry?

  Vertical markets versus horizontal markets

Assess the following: spot buying versus strategic sourcing, direct materials versus indirect materials, and vertical markets versus horizontal markets.

  Impact of corporate social responsibility policy

For this project component, you generally assess the impact of corporate social responsibility policy on the workplace and corporate America.

  Which role is more important

When communicating a change, which role is more important: reporter of information or sense maker? Why

  What is the standard deviation of demand during lead time

What is the standard deviation of the demand during lead time? (recall from statistics that standard deviation is equal to the square root of variance and also that there are only rules for variances).

  Write several paragraphs describing the aspects of a servant

write several paragraphs describing the aspects of a servant leader. Why does it appeal to an approach to leadership? What are some concerns ? Why does servant leadership seem appropriate given The Thinking Habits?

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