Assume a fixed cost of $900, a variable cost of $4.00, and a selling price of $5.50. a. What is the break-even point? (Roundup your answer to the next whole number.) b. How many units must be sold to make a profit of $500.00? (Roundup your answer to the next whole number.) c. How many units must be sold to average $0.25 profit per unit? (Roundup your answer to the next whole number.)
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.”
Assume a fixed cost of $900, a variable cost of $4.00, and a selling price of $5.50.
a. What is the break-even point? (Roundup your answer to the next whole number.)
b. How many units must be sold to make a profit of $500.00? (Roundup your answer to the next whole number.)
c. How many units must be sold to average $0.25 profit per unit? (Roundup your answer to the next whole number.)
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