Determine the costs associated with offering your product.
1. Which costs are fixed and which are variable?
2. Determine the cost & price of a single unit of your product by using formula.
3. Discuss which pricing strategy you are using to determine the price logically?
Please choose any unique product and answer these questions
Ans) The unique product is Robotic computer. The cost associated with it are the fixed cost and variable costs. 1) Fixed cost are those which does not depend upon the quantity of out and it accrue even if there is no production in this case is the rent of the land taken to established the production facility to manufacture Robots computers and the variable costs are those which very according to the production for example of the productions of the robotic computer is increased than the the metal requirements to manufacture the robotic computer will also increase.Ans 2) The formula for calculating the single unit of a product are = Total cost of manufacturing ( FIXED cost + variable cost) / Total no of units produced.
FIXED cost includes = Rent for the plant + lightning expenses + maintenance expences and variable expenses are = raw material use to manufacture robotic computer + Wages of workers skilled as well unskilled + All the manufacturing expenses + MARKETING expenses.
Ans3.The price strategy that is used is cost plus profit strategy where per unit cost is determined and profit proportion is added to get the final price of the product for example Selling price of robotics computer = Total cost + profit margin.
Determine the costs associated with offering your product. 1. Which costs are fixed and which are...
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