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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Part Four.
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FIGURE 12-2 FIGURE 12-2 Four approaches for selecting an approximate price level 12-2
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide... percentage of sales volume...
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide FC.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide FC+ UVC.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide FC+ ( UVC x Q ).
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide FC+ ( UVC x Q ) Q x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide FC+ ( UVC x Q ) Q( 1- Target Return on Sales ) x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide FC+ ( UVC x Q ) Q( 1- Target Return on Sales ) x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide $30,000 + ( $42 x 1,800) Q( 1- Target Return on Sales ) x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide $30,000 + ( $42 x 1,800) ( 1-.24 ) x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide $30,000 + 75,600 1,800( 1-.24 ) x $42 ( 1,800) x
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide 105,600 1,800( 1-.24 ) x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide 105,600 1,800.76 x.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide 105,600 1,368.
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Target Return on Sales Pricing Target Return on Sales = 24% To calculate a price to achieve a profit that is a specific for a wristwatch UVC = $42.00 FC = $30,000 Upper Limit Price = $78.00 Q = 1,800 You will need to manually advance to the next slide $77.19 $77.56 24.36%....
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FIGURE 12-2 FIGURE 12-2 Four approaches for selecting an approximate price level 12-17
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Year 1Year 2 Target Return on Investment
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Upper-limit price $78Year 1Year 2 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008 Less: Taxes$ 17,004 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008 Less: Taxes$ 17,004 Net Profit After Taxes$ 17,004 You will need to manually advance to the next slide.
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008 Less: Taxes$ 17,004 Net Profit After Taxes$ 17,004 Investment$250,000 You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008 Less: Taxes$ 17,004 Net Profit After Taxes$ 17,004 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide.....
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600 Gross Margin (Net Sales – COGS)$ 64,800 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008 Less: Taxes$ 17,004 Net Profit After Taxes$ 17,004 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide...
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide...
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8%6.7% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investme$250,000 Return on Investment 6.8% You will need to manually advance to the next slide. $77.56 $78.34..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56$78.34 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8%6.7% You will need to manually advance to the next slide..
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,252 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,252 Less: Taxes$ 17,004$ 16,626 Net Profit After Taxes$ 17,004$ 16,626 Investment$250,000 Return on Investment 6.8%6.7% You will need to manually advance to the next slide... $77.90 $78.34
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Upper-limit price $78Year 1Year 2 Price per unit (P) $77.56$77.90 Units Sold (Q)1,800 Unit Variable Cost (UVC) $42$42.42 Fixed Costs (FC)$30,000 Investment$250,000 State and Federal Taxes50% Net Sales (P X Q)$139,608$140,220 Less: Cost of Goods Sold (Q x UVC)$ 75,600$ 76,356 Gross Margin (Net Sales – COGS)$ 64,800$ 63,864 Less: Fixed Costs$ 30,000 Net Profit Before Taxes$ 34,008$ 33,864 Less: Taxes$ 17,004$ 16,932 Net Profit After Taxes$ 17,004$ 16,932 Investment$250,000 Return on Investment 6.8% You will need to manually advance to the next slide....
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FIGURE 12-2 FIGURE 12-2 Four approaches for selecting an approximate price level 12-47
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FIGURE 12-2 FIGURE 12-2 Four approaches for selecting an approximate price level 12-48..
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FIGURE 12-2 FIGURE 12-2 Four approaches for selecting an approximate price level 12-49
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At-market price Above-market price Below-market price..
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FIGURE 12-2 FIGURE 12-2 Four approaches for selecting an approximate price level 12-51
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End of Program.
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