Pricing Objectives-
● To establish a place in the market by pricing the product at a reasonable price slightly above the competition in order to represent a unique product and skim the market at the same time.
● To maximize sales volume by establishing a competitive position in order to gain control in the market and to maximize market share.
● To bring in the high value of the product into the minds of the consumers by representing the high-value, high-quality product and create a differentiation between our product and the competitor’s product.
● To set a compelling, unique and exciting price for the consumer's needs, demands, and interests and to establish, maintain and strengthen the confidence of the consumers in our product.
● To attract a maximum number of people by using communication to convey the mission of …show more content…
(“The Importance of the Breakeven Point,” n.d.).
Break-even point is the point where the business’s total income or revenue is equal to the total expenses of the business. There is no profit at this point. (“The Importance of the Breakeven Point,” n.d.).
The formula to calculate Break-even: Total fixed costs / (Selling price - total variable costs).
Total fixed cost, variable cost, selling price and the net profit by selling the product is analyzed, and the calculations are performed to determine the break-even point of the company.
Total Fixed Cost
$150000
Variable Cost per unit
$0.50
Sales price per
● To establish a place in the market by pricing the product at a reasonable price slightly above the competition in order to represent a unique product and skim the market at the same time.
● To maximize sales volume by establishing a competitive position in order to gain control in the market and to maximize market share.
● To bring in the high value of the product into the minds of the consumers by representing the high-value, high-quality product and create a differentiation between our product and the competitor’s product.
● To set a compelling, unique and exciting price for the consumer's needs, demands, and interests and to establish, maintain and strengthen the confidence of the consumers in our product.
● To attract a maximum number of people by using communication to convey the mission of …show more content…
(“The Importance of the Breakeven Point,” n.d.).
Break-even point is the point where the business’s total income or revenue is equal to the total expenses of the business. There is no profit at this point. (“The Importance of the Breakeven Point,” n.d.).
The formula to calculate Break-even: Total fixed costs / (Selling price - total variable costs).
Total fixed cost, variable cost, selling price and the net profit by selling the product is analyzed, and the calculations are performed to determine the break-even point of the company.
Total Fixed Cost
$150000
Variable Cost per unit
$0.50
Sales price per