Harley Davidson Case Study

Great Essays
Register to read the introduction… Discuss on the marketing mix (Product, Price, Promotion and Place) of Harley Davidson. 5. Who are the customers of Harley Davidson? 6. What is type of consumer product category for Harley …show more content…
Service inseparability means that services cannot be separated from their providers, whether the providers are people or machines. Service variability means that the quality of services depends on who provides them as well as when, where, and how they are provided. Service perishability means that services cannot be stored for later sale or use. Services offered by a dentist are much more intangible, inseparable, variable, and perishable than those offered by a drug store because the dentist offers more of a pure service than does a store that sells merchandise. Compared to the services offered by a drug store, it is more difficult to evaluate the quality of the service provided by a dentist prior to the visit, and in some cases even after the service was performed. The patient must be present for dental work to be performed, and the time spent creating the service cannot be stored for later purchase if the patient misses an …show more content…
A company faces fixed costs of RM100,000 and variable cost of RM8.00/unit. They plan to directly sell their product to the market for RM12.00. How many units must they produce and sell to break even?

3. A manufacturer is trying to determine its breakeven volume. With fixed costs of RM100,000, a variable cost of RM10, and expected sales of 50,000 units, what should the manufacturer’s unit cost be to breakeven?

4. (a) A consumer purchases a mobile phone for $150 from a retailer. If the retailer’s mark-up is 40 percent, and the wholesaler’s mark-up is 15 percent, both based on their selling prices, for what price does the manufacturer sell the product to the wholesaler? Please show your calculations below.

(b) If the unit variable costs for each mobile phone are $40 and the manufacturer has fixed costs totaling $200,000, how many mobile phones must this manufacturer sell to breakeven? Please show your calculations below.

***END*** Week 9 - Topic 6: Pricing |

Discussion question. Present at the end of the class.
Which pricing strategy – market skimming or market penetration – does each of the following companies use? 1.

Related Documents

  • Decent Essays

    Hrm/531 Final Exam

    • 540 Words
    • 3 Pages

    1. Write 0.27 as a percentage. Answer is _____ %. Do not put the percent symbol in your answer. Correct Answer: 27 2.…

    • 540 Words
    • 3 Pages
    Decent Essays
  • Great Essays

    The Analysis of Harley-Davidson’s Current Strategy. Two Views. Strategy 1 • Engage with the Asian distribution channels to reinforce strategic alliance, (Hamid, (2015). • Little excuses leads to the lack of growth in the markets.…

    • 595 Words
    • 3 Pages
    Great Essays
  • Improved Essays

    All other assumptions are unchanged. What is the new required price? 10. Start with the assumptions in problem 9. But now assume that the additional volume does not enable enough economies-of-scale to reduce the average cost per case as much as originally anticipated.…

    • 654 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Fin 511 Week 1 Assignment

    • 634 Words
    • 3 Pages

    CHARLES STURT UNIVERSITY SYDNEY DARLINGHURST CAMPUS LEVEL 1, 63 OXFORD STREET DARLIGHURST NSW 2010 AUSTRALIA ASSIGNMENT ON ECONOMICS FOR BUSINESS 511 SUBMITTED TO KARUNAGARAN MADHAVAN SUBMITTED BY RUJALA SHRESTHA STUDENT ID : 11640342 5th AUGUST ,2017 Question 1 The objective of producer is to produce the goods and services and supply to the customers in an appropriate price which is determined through price elasticity of the demand of the product. The producer is interested in price elasticity because it helps to determine the price in equilibrium point where it can make profit to producers and satisfy the customers toward that consumed product. The total revenue is calculated by multiplying the price per unit of the product with…

    • 634 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Best Care Case Study

    • 485 Words
    • 2 Pages

    a.) In this income statement the operating expenses are included as opposed to the other two in which there is no operating income. b.) One of the income statement reflects a non-profit organization and the other a for profit business. You can tell because the for profit business must account for how much they think they will pay in income taxes that year, hence, one statement has a provision for income taxes.…

    • 485 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Calculation for Break Even Advertisement on newspaper cost $500 Advertisement on flyers ($0.05*2000) $100 Cost of photographer $3,000 Total Fixed cost $3,600 Variable cost (5000*$1.50)…

    • 1418 Words
    • 6 Pages
    Improved Essays
  • Decent Essays

    Week Two Mini Case 1Q) The no of units of each style that wally should make during the initial phase of production so that all the styles are made in Hong Kong so that the Wally’s initial production must comprise of 10000 units is 629,600,863,1845,600,1343,600,2904,1202,9900. Since the time-based compensation of Hong Kong is more compared to china I would recommend that the organization ought to create the base conceivable units of every style so that the base prerequisite is met. 2Q)…

    • 357 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Grant Enterprises is considering an opportunity cost, “where one will choose one alternative over another and are relevant costs for decision-making purposes” (Sawyer, Jackson & Jenkins, 2013, p. 10). What elements will management need to consider to make a relevant decision about a new product? Marketing could survey the marketplace to get a fill for how a new product could be received. This data would be useful in determining a possible price; manufacturer suggested retail price range, discounts for volume purchases and acceptance and likely demand. Marketing will need to understand the products general deign and function to provide a marketing campaign portfolio, ultimately providing the material needed by the sales department.…

    • 372 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    a. It can change rapidly. c. It is easy to regulate. b. It protects the less fortunate. d. It encourages growth. 6.…

    • 3520 Words
    • 15 Pages
    Great Essays
  • Improved Essays

    2. Program Break-Even In determining the break-even analysis, the break-even formula of the total revenue (TR) equals the total expense (TE). In the budget, the fixed revenues (FR) and variable revenues, do not relate to the green fees or the pool prices. Lastly, the formula designates that revenue as unrelated variable revenue (UVR).…

    • 925 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Introduction: Foxy Originals is a Canadian jewelry company; founded by owners Jennifer Ger and Suzie Chemel in 1998. Their goal was to create high quality and unique jewelry pieces that targeted women between the ages of 20 to 45 at an affordable price point. The company has been successful in the Canadian and United States market but both Jennifer Ger and Suzie Chemel want to re-evaluate Foxy Original’s existing sales strategy.…

    • 1639 Words
    • 7 Pages
    Superior Essays
  • Brilliant Essays

    Now, assume that sufficient evidence exists to support the selling price of $95,000 for the assembly line system. However, there is some concern regarding the $12,000 charged for the installation services that ALI heard about from a prior customer. What type of analysis must be done related to the $12,000 price for installation services to decide whether it should be used to allocate revenue to the components in the sales agreement? Explain your answer. 4.…

    • 1851 Words
    • 8 Pages
    Brilliant Essays
  • Improved Essays

    My team has analyzed the financial positions of American Eagle Outfitters and The Buckle Company. We have analyzed the inventory of both companies to see how profitable they may be. From our research, we present to you the following information. American Eagle evaluates its merchandise inventory at the lower of average cost or market, using retail method. Average cost includes merchandise design and sourcing costs and related expenses.…

    • 572 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. a. How much will the firm produce? b. How much will it charge? c. Can you determine its profit per day?…

    • 719 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Chicken Nuggets Case Study

    • 1052 Words
    • 5 Pages

    * Completed the chart by providing the combined (total) demand schedule at the various levels given for problem 1b. * Determined the new price based on the supply schedule and combined U.S. and European demand schedule given for problem 1c. * Determined the price that will be paid by European consumers for problem 1d. * Determined the quantity consumed by European consumers for problem 1e. | 12 |…

    • 1052 Words
    • 5 Pages
    Decent Essays

Related Topics