Keller's Reagent is the most popular metallographic etchant for etching aluminiumalloys. The chemical composition of the etchants includes methanol, hydrochloricacid, nitric acid and hydrofluoric acid. The cost of methanol of is Rs. 500 per litre,nitric acid is Rs. 1000 per litre, hydrochloric acid is Rs. 2000 per litre andhydrofluoric acid at Rs. 4000 Per litre. A unit of 1000 ml reagent contains 750 ml ofmethanol, 50 ml of hydrochloric acid, and 100 ml nitric acid and 100 ml hydrofluoricacid. The man-hour cost handling the manufacturing unit results in Rs. 75,000 per1000 units of reagent. The marketing, advertisements, transportation add up to Rs.40000 per 100 unit of reagent. Estimate the price per unit by following pricingmethod;1. Cost plus pricing for 26% profit.2. Mark-up pricing for 20% mark-up.

Cost-plus pricing refers to a pricing strategy wherein a certain markup is added to the cost of the…

Answered: 40000 per 100 unit of reagent. Estimate…

40000 per 100 unit of reagent. Estimate the price per unit by following pricing method; 1. Cost plus pricing for 26% profit. 2. Mark-up pricing for 20% mark-up.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Concept explainers

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.”

Question

Keller's Reagent is the most popular metallographic etchant for etching aluminium
alloys. The chemical composition of the etchants includes methanol, hydrochloric
acid, nitric acid and hydrofluoric acid. The cost of methanol of is Rs. 500 per litre,
nitric acid is Rs. 1000 per litre, hydrochloric acid is Rs. 2000 per litre and
hydrofluoric acid at Rs. 4000 Per litre. A unit of 1000 ml reagent contains 750 ml of
methanol, 50 ml of hydrochloric acid, and 100 ml nitric acid and 100 ml hydrofluoric
acid. The man-hour cost handling the manufacturing unit results in Rs. 75,000 per
1000 units of reagent. The marketing, advertisements, transportation add up to Rs.
40000 per 100 unit of reagent. Estimate the price per unit by following pricing
method;
1. Cost plus pricing for 26% profit.
2. Mark-up pricing for 20% mark-up.

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