Customers judge value by the benefits of what they buy relative to the cost of that item.Pricing decisions are then very critical to delivering value to the customer.

Profit Orientation - Cost Base Pricing

Variable Cost = $30 per tote

Fixed Cost = $4,500 (annually)

Whole Market Estimate is 76,000 (see Rochester census data for number of females between the ages of 18 and 65) of which I would like to get 10%

What would the selling price of the tote be if I wanted to get a 50% target profit.

What would the Break Even volume be, i.e., how many would I have to make and sell before I began to make money.