Price Calculation – Breakeven Pricing

Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach.

 

ACTIVITY/TASK

Using break-even analysis:

  1. How many units need
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Price Calculation – Cost-plus Pricing

Cost-plus pricing is a very simple form of pricing. This approach was once fairly common, but is less widespread today. Your task for this activity is to work through the following two examples to gain a better understanding of this approach.

 

ACTIVITY/TASK

Using cost-plus pricing to:

  1. Set the price if you expect to sell 1,000 units and you want a
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Pricing Objectives


Pricing decisions will form a key part of the firm’s overall marketing strategy. In this activity, your task is to identify why the firm has adopted their particular pricing approach.

 

ACTIVITY/TASK

  1. When ‘Great Cuts’ (haircuts) originally opened, they charged just $12 per haircut. However, since they have become widespread and more popular, they have progressively increased their price to over
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Improving the Marketing Mix

In this exercise, you are required to review the top-level financials of a small chain of hamburger stores and suggest improvements to their marketing mix. This activity should provide an introduction of how modifications to a firm’s marketing mix can impact business performance.

So let’s help Fat Frank’s Burgers make more money!

 

ACTIVITY/TASK

Frank owns three hamburger shops (Fat … See the full activity...