1. After determining the total product cost of P100.00 per unit, Mr. Abecee the owner, decided to set mark-up of 15% on cost of his product. Determine the final retail price per unit of product. Show your solution. 2. What is the pricing strategy used by Mr. Abecee? Briefly explain this pricing strategy. 3. How many units must be sold for Mr. Abecee to Break-even if Fixed Cost is Php 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is Php.5.00.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
PLEASE ANSWER ASAP! THANK YOU!
1. After determining the total product cost of P100.00 per unit, Mr. Abecee the owner, decided to set mark-up of 15% on cost of his product. Determine the final retail price per unit of product. Show your solution.
2. What is the pricing strategy used by Mr. Abecee? Briefly explain this pricing strategy.
3. How many units must be sold for Mr. Abecee to Break-even if Fixed Cost is
Php 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is Php.5.00.
4. Differentiate geographical pricing from psychological pricing.
5. If you are to put -up a small start-up business with a starting capital of P50,000 ...
a) What business will it be? and
b) What will be your best pricing strategy? Justify.
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