a) After determining the total product cost of P100.00 per unit, Mr. Rick the owner, decided to set mark-up of 15% on cost of his product. Determine the final retail price per unit of product. b) What is the pricing strategy used by Mr. Rick? Briefly explain this pricing strategy. c) How many units must be sold for Mr. Rick to Break-even if Fixed Cost is Php 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is Php 5.00.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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a) After determining the total product cost of P100.00 per unit, Mr. Rick
the owner, decided to set mark-up of 15% on cost of his product.
Determine the final retail price per unit of product.
b) What is the pricing strategy used by Mr. Rick? Briefly explain this
pricing strategy.
c) How many units must be sold for Mr. Rick to Break-even if Fixed Cost
is Php 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is
Php 5.00.
Transcribed Image Text:a) After determining the total product cost of P100.00 per unit, Mr. Rick the owner, decided to set mark-up of 15% on cost of his product. Determine the final retail price per unit of product. b) What is the pricing strategy used by Mr. Rick? Briefly explain this pricing strategy. c) How many units must be sold for Mr. Rick to Break-even if Fixed Cost is Php 100,000, Unit Selling Price is Php10.00 and Unit Variable cost is Php 5.00.
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