$50sell price - $25profit = $25; Fixed Costs$50,000,000/$25 = $2,000,000 Break-even amount. If the amounts changed $50sell price - $20profit = $30; Fixed Costs$60,000,000/$25 = $2,000,000; the break-even amount remains the same for both circumstances.
Pg. 411 Case Study
Q1. Front Rows; since they want to give the perception that Yankee stadium is the place to be. And having empty seats for an established team could be a damaging outlook. The first level of the non-premium seats & high priced seating that was cut to meet the down fall in the economy.
Q2. The environmental factors that play a role in this case are the off seasons, when baseball is not being played. They must continue to build profits and revenue during these downtimes, such as shows to honor players or tours, etc.
Q3. Costs would be very little impacted because the stadiums contract with ticket brokers or Stub Hub to by the additional seating, while selling them to at triple the costs. For example, the seating that costs $1250 will be sold on Stub Hub for $8000.
Ch. 14 Pg. 434
Q3. Cost Based Pricing Strategy; Fixed Costs$100,000+$50,000variable costs = $150,000 / Units Sold 1,000 = $150 * 30% Markup = $195 that will be charged for the phones.
Q10. This is the competitor-based pricing strategy; this method is the setting of a price that is comparable to competitors. By setting a price at the same or close to a competitor, this signals to consumers that the product is similar; whereas setting the price higher signals greatness in features, better quality. Therefore, in this case I feel that the boss should do the improvement value method & increase their prices of the meal; because their aim is to be the top gourmet restaurant and offer the best to its customers.
Net Savvy www.coupons.com
The offered coupon products are as follows:
|Apparel |Baby & Toddler |
|Beverages |Books & Magazines |
|Food |Healthcare |
|Home Entertainment |Household |
|Personal Care |Pet Care |
|Photography |Professional Services |
|Restaurant |Toys & Game |
Q1. Based on review of the coupons site & information obtained in the book, coupons tend to cause problems for retailers. Unless they are used by first or new buyers, the net impact on sales is insignificant.
Q2. No; rebates are offered through manufacturers. They like these types of advantages, because 90% of consumers never bother to redeem them.
Q3. This elevates the variable costs of making coupons & having them distributed. When most consumers may not