You wish to open up a new printing business in the Hamilton area. Your target market will be other new businesses that require business cards, posters, and flyers. You hope to serve new entrepreneurs by offering free design clinics. Fixed Costs: The cost of the leasing a printing machine, rent, insurance, taxes and heat will be approximately $35 000 per year. Selling Price: The average selling price for business cards is $20. Variable Cost: $16.50 Show formulas and answers. la. Calculate the gross profit.) Gross Profit= Selling Price-Variable Costs b. How many sets of business cards will have to be sold to break even? Fixed Costs (Selling Price-Variable Costs) Break-Even=

You wish to open up a new printing business in the Hamilton area. Your target market will be other new businesses that require business cards, posters, and flyers. You hope to serve new entrepreneurs by offering free design clinics. Fixed Costs: The cost of the leasing a printing machine, rent, insurance, taxes and heat will be approximately $35 000 per year. Selling Price: The average selling price for business cards is $20. Variable Cost: $16.50 Show formulas and answers. la. Calculate the gross profit.) Gross Profit= Selling Price-Variable Costs b. How many sets of business cards will have to be sold to break even? Fixed Costs (Selling Price-Variable Costs) Break-Even=

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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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

You wish to open up a new printing business in the Hamilton area. Your target
market will be other new businesses that require business cards, posters, and
flyers. You hope to serve new entrepreneurs by offering free design clinics.
Fixed Costs: The cost of the leasing a printing machine, rent, insurance, taxes and
heat will be approximately $35 000 per year.
Selling Price: The average selling price for business cards is $20.
Variable Cost: $16.50
Show formulas and answers.
la. Calculate the gross profit.
Gross Profit= Selling Price-Variable Costs
b. How many sets of business cards will have to be sold to break even?
Fixed Costs
(Selling Price-Variable Costs)
Break-Even=

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