BUS 100 Lecture Notes - Dynamic Pricing, Price Skimming, Breakcore
19 Nov 2012
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Chapter 14 pricing and distributing goods and services. Often take market information and use that as base (ex. Weight production costs and capital expenses/marketing against sales receipts: market-share objectives. Market share = company"s percentage of the total market sales for specific product. Will set lower initial prices and take loss to increase market share: price setting tools, cost-orientated pricing. Considers desire for profit and costs of providing good. Movie) this is not relevant admission is always : break-even analysis: cost-volume-profit relationships. Cost-orientated pricing covers variable costs (costs that change with the # goods produces/sold) Also makes some money towards fixed costs (costs unaffected by # soldi. e. building) Break-even analysis = assessment of how many units must be sold at given price before company begins to make a profit. Breakeven point = number of units that must be sold at given price before the company covers all of its fixed and variable costs (1) (in unity sold)
