Touché Toiletries Inc. has developed an addition toits Lizardman Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are45 cents for a 3-ounce bottle, and heavy advertisingexpenditures in the first year would result in totalfixed costs of $900,000. Ode d’Toade Cologne ispriced at $7.50 for a 3-ounce bottle. How manybottles of Ode d’Toade must be sold to break even?
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.”
Touché Toiletries Inc. has developed an addition to
its Lizardman Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are
45 cents for a 3-ounce bottle, and heavy advertising
expenditures in the first year would result in total
fixed costs of $900,000. Ode d’Toade Cologne is
priced at $7.50 for a 3-ounce bottle. How many
bottles of Ode d’Toade must be sold to break even?
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