BUSI 2210 Chapter 4: Pricing Problems Help
10 Apr 2018
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Cat harbour fly fishing suppliesmakes a very high quality fly fishing rod and reel. Their fixed costs for the coming year are estimated at ,000. They sell the rod/reel combination for directly to retailers throughout north. The company"s variable cost to produce each rod/reel combination is . Sales for the coming year are expected to reach. One of the managers at cat harbour thinks the sales forecast is too optimistic. Golf town, a company that markets golf equipment and accessories, is considering introducing a new gadget that repairs marks on golf balls. The company"s owner, fiona haugom, is confident that her cost estimates are accurate, but she is not so sure about the accuracy of her sales estimates. If she decides to introduce the product, ms. haugom will allocate ,000 of her company"s fixed costs to it. Labour and material will be sh. 50 per unit: ms. haugom estimates that 10,000 units can be sold next summer.
