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0,000 units could be sold! They are worried about setting the right price, but want to tween a 30-40% profit at least. They are unsure about what direction to take. They have er less impressive models sell for, on average, $600. They have asked for some help in ing how to proceed on the production front. They have run some prototype builds in

0,000 units could be sold! They are worried about setting the right price, but want to tween a 30-40% profit at least. They are unsure about what direction to take. They have er less impressive models sell for, on average, $600. They have asked for some help in ing how to proceed on the production front. They have run some prototype builds in

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Build Hours Materials cost Utl Supplies, Other Expenses 0.1 50 199.49 202.78 0.15 55 279.49 222.46 0.2 20 206.37 82.71 0.3 22 231.99 92.98 0.4 15 191.49 62.03 0.45 10 211.24 48.36 0.46 12 219.24 48.63 0.5 16 209.37 68.17 0.51 12 199.55 43.63 0.52 18 196.55 73.44 0.53 12 176.74 43.63 0.54 13 196.49 52.76 0.55 12 203.37 42.63 0.56 16 213.24 62.17 0.6 12 203.37 43.63 0.8 12 247.86 43.63 0.9 11 197.49 44.49 1.0 15 187.62 62.03 1.1 12 191.55 42.63 1.15 12 181.62 42.63
Transcribed Image Text:Build Hours Materials cost Utl Supplies, Other Expenses 0.1 50 199.49 202.78 0.15 55 279.49 222.46 0.2 20 206.37 82.71 0.3 22 231.99 92.98 0.4 15 191.49 62.03 0.45 10 211.24 48.36 0.46 12 219.24 48.63 0.5 16 209.37 68.17 0.51 12 199.55 43.63 0.52 18 196.55 73.44 0.53 12 176.74 43.63 0.54 13 196.49 52.76 0.55 12 203.37 42.63 0.56 16 213.24 62.17 0.6 12 203.37 43.63 0.8 12 247.86 43.63 0.9 11 197.49 44.49 1.0 15 187.62 62.03 1.1 12 191.55 42.63 1.15 12 181.62 42.63
The team is eager to bring this to market and thinks they could be really successful and project 10,000 units could be sold! They are woried about setting the right price, but want to make between a 30-40% profit at least. They are unsure about what direction to take. They have seen other less impressive models sell for, on average, $600. They have asked for some help in determining how to proceed on the production front. They have run some prototype builds in which they detailed their process in the attached schedule. Additionally, they think they can rent out a factory for anywhere between $700,000-$1,000,000. They have asked your firm for some advice in helping the price their product. How much would you recommend they price this product for, and why (provide some reasoning on why/how you achieved this price)?
Transcribed Image Text:The team is eager to bring this to market and thinks they could be really successful and project 10,000 units could be sold! They are woried about setting the right price, but want to make between a 30-40% profit at least. They are unsure about what direction to take. They have seen other less impressive models sell for, on average, $600. They have asked for some help in determining how to proceed on the production front. They have run some prototype builds in which they detailed their process in the attached schedule. Additionally, they think they can rent out a factory for anywhere between $700,000-$1,000,000. They have asked your firm for some advice in helping the price their product. How much would you recommend they price this product for, and why (provide some reasoning on why/how you achieved this price)?
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