Reference no: EM132300087

Question 1. What pricing objective(s) is a skimming pricing policy most likely implementing? Is the same true for a penetration pricing policy? Which pricing policy is probably most appropriate for each of the following products?

a. The NEW battery operated auto called Flash: no gasoline needed - 24 hour rechargeable battery ________________
b. a new type of home flashlight _________________
c. a revolutionary skin patch which complete removes the urge to smoke___________
d. Felix protein Shakes__________________

Question 2. Is price discrimination involved if a large oil company sells gasoline to a taxicab associations for 3.0 cents less per gallon than what its sells to retail service stations? The taxicab association will resell to taxi drivers. What happens if the taxi cab associate resells gasoline to both taxicab drivers and to the general public?

Question 3. If a retailer sells a coat for $119.99. What was his markup if he bought the coat for $62.99?
Markup in actual dollars ________
Express markup as a % of cost _________
Express markup as a % of selling price _______

Question 4. An appliance retailer purchased a hand mixer for $18.00. He plans to take a 30% markup. What will the selling price be?

Question 5. A stationery store desires a minimum 40% markup at retail. If a box of envelopes will be sold at retail for 79 cents per box, what is the maximum price the store can pay for them and still get its stated markup (40%)?

Question 6. A sporting goods store has been offered a closeout purchase on bicycles. The cost of each bike is $105, and it should retail for $160. What markup at the retail price would the store obtain?

Question 7. The XYZ Fencing company sells a custom made wooden gate through wholesalers and retailers. The retail selling price is $800.00 and the manufacturing cost to the company is $305.00. The retail markup was 35 percent and wholesale markup was 20 percent.

A. What was the cost to the wholesaler?
B. What was the cost to the retailer?
C. What percentage markup on selling price did the producer make?

Question 8. If the Pointer Appliance Company is investigating the additional of a new and improved blender to its line of consumer appliances. The blender is going to require additional expenditures on the part of the Pointer Company. Management wants to determine what to price the blender at. The fixed costs associated with manufacturing the blenders are $125,000. The variable costs are $8.50 per unit. Calculate the breakeven point in units at selling prices of $15.99, $19.99 and $29.99. Show your work. Through your research you know that this is a tough competitive market with many competitors. No competitor has more than 10% of the market. The market leader is owned by Wal-Mart and sells for $21.99. The total market for blenders of this type was 250,000 units last year. Which of these prices would you recommend and why? Please give a detail explanation for your decision

Question 9. Yoplait has new line of Greek yogurt in a 9 oz size. The Marketing Managers plan to test market the product in one small market for three weeks. They have calculated the cost and projected sales for each of the different flavors: Plain cost is .55 each with a projected sales of 10,000 units, Strawberry cost per unit is .60 with a projected sales of 13,000 units, Blueberry cost is .68 per unit with a projected sales of 9,000 units. Each yogurt product will retail at the same price.

Using the average cost pricing and a 35% markup what will Yoplait price these product at the retail level

Question 10. MyAppliance+ is adding a new wine cooler to its appliance product mix. To implement the new cooler it will have a fixed cost of $300,000 but the selling price is $150.00 with a variable cost of $89.99. MyAppliance+ wants to make at least $60,000 of profit the first year with this new product. How many wine coolers does the company have to sell to reach this profit goal?