DATA Sales Report Units sold, by game Charms 46 530 Clever Monster 67 335 Agiz 71 985 soccer 84 330 Total 270 180 Revenues Game 3 Charms Gross sales (retail price) 3 257 100 Less Middlemen remittances (1 132 756) Net sales 2 124 344 Cost of goods sold DVD inventory Beginning of year 0 Add Cost of goods manufactured 190 050 Add Cost of additional orders 0 Cost of DVDs available for sale 190 050 Less DVD inventory End of year 126 383 Total cost of DVDs sold 63 667 Add Download costs 10 333 Cost of DVDs sold 74 000 Cost of obsolete DVDs 139 236 Gross profit (Loss) 1 911 108 Game 4 Clever Monster Gross sales (retail price) 5 050 200 Less Middlemen remittances (1 764 616) Net sales 3 285 584 Cost of goods sold DVD inventory Beginning of year 0 Add Cost of goods manufactured 208 150 Add Cost of additional orders 0 Cost of DVDs available for sale 208 150 Less DVD inventory End of year 105 793 Total cost of DVDs sold 102 357 Add Download costs 10 246 Cost of DVDs sold 112 603 Cost of obsolete DVDs 175 126 Gross profit (Loss) 2 997 856 Game 5 Agiz Gross sales (retail price) 5 686 815 Less Middlemen remittances (1 970 859) Net sales 3 715 956 Cost of goods sold DVD inventory Beginning of year 150 395 Add Cost of goods manufactured 215 390 Add Cost of additional orders 0 Cost of DVDs available for sale 365 785 Less DVD inventory End of year 278 807 Total cost of DVDs sold 86 978 Add Download costs 23 530 Cost of DVDs sold 110 508 Gross profit (Loss) 3 605 448 Game 6 soccer Gross sales (retail price) 5 481 515 Less Middlemen remittances (1 905 536) Less Pre launch discount ( 30 557) Net sales 3 545 423 Cost of goods sold DVD inventory Beginning of year 0 Add Cost of goods manufactured 222 630 Add Cost of additional orders 0 Cost of DVDs available for sale 222 630 Less DVD inventory End of year 124 915 Total cost of DVDs sold 97 715 Add Download costs 34 593 Cost of DVDs sold 132 308 Gross profit (Loss) 3 413 115 Total of net sales 12 671 307 Module 9 Pricing assignment Group (10 ) Break even point The break even point in pricing is the point where costs and expenses are equal to revenue At that point, there are not any expenses, not any loss A break even analysis will determine the lowest level to set a selling price in a market Performing this analysis can help avoid costly mistakes, such as pricing too low and thus losing a large amount of money The break even calculation for a price, given a projected number of units sold, is break even price variable cost (fixed expenses projected units) In the Video Game simulation, these are the Variable and Fixed costs Variable cost cost of manufacturing the DVDs (Cost of DVDs sold) per unit The Variable cost depends on the number of DVDs manufactured In our case, well calculate it by dividing the Cost of DVDs sold by the number of units we expect to manufacture Fixed costs (or Operating expenses) any other expenses that we run into for operating the company (communication, customer services, development, general and administrative expenses ) Estimated completion time 30 minutes 1 hour How to Proceed Answer the following questions IMPORTANT Explain your answers A Yes No answer of just a number will not be accepted as an answer In the strategy Room, find the Sales Report within the Report section Analyze the data and calculate the break even price of a new video game for the next projected period Because the break even price is conditioned by the Number of DVDs to produce, you will need to consider different numbers of DVDs to be produced to set a reasonable break even price) Once you have set a break even price, check the number of projected sales for it Will you sell those many units Is it feasible Will the projected sales exceed your sales goals How much If the break even price is finally the selling price, provided you sell all the projected units, what would be your revenues at that price Will they exceed or fall short of your goals Following Question 3, if the break even price is finally the selling price, provided you sell all the projected units, how will it affect the Net Income If selling prices and units sold were the projected ones, how could you increase the Net Income What other variable could you adjust so Net Income increases RUBRICS Criteria Exceptional 10 points Proficient 8 points Above Average 7 points Average 6 points Incomplete 0 points Criterion Score Examples of pricing strategies 6 examples of pricing strategies were included All choices are relevant and applicable 5 examples of pricing strategies were included Choices are fairly relevant and applicable 4 examples of pricing strategies were included Choices are fairly relevant and applicable Less than 3 relevant examples of pricing strategies were included No relevant examples were included Score of Examples of pricing strategies, 10 Explanation of how the pricing strategy is applied Explanation is very detailed and demonstrates an excellent understanding of each pricing strategy Explanation is detailed and demonstrates a good understanding of each pricing strategy Explanation could use more detail but demonstrates a good understanding of each pricing strategy Explanation does not demonstrate a clear understanding of each pricing strategy Explanation is not provided or is not on topic Score of Explanation of how the pricing strategy is applied, 10 Identification of factors that make it suitable or not for pricing strategy Explanation is well developed and clearly identifies 2 factors that make it a suitable or non suitable strategy Explanation is well developed clearly identifies 1 factor that make it a suitable or non suitable strategy Explanation is fairly well developed and identifies 1 factor that make it a suitable or non suitable strategy Explanation could be further developed Explanation is not provided Score of Identification of factors that make it suitable or not for pricing strategy, 10 Format (500 words, 12 size font, headings, creative, title page) Format is very well applied and project is proficient and creative Missing 1 element Missing 2 elements Missing 3 elements Unacceptable Score of Format (500 words, 12 size font, headings, creative, title page), 10 Correct spelling and use of grammar rules 0 1 errors 2 4 errors 5 7 errors 7 10 errors 10 or more errors Score of Correct spelling and use of grammar rules , 10 APA NO WIKIPEDIA APA well done and complete NO WIKIPEDIA APA needs work, but cited Some citations may be missing APA needs work IF APA MISSING IT IS AN AUTOMATIC ZERO ON THE ASSIGNMENT Score of APA NO WIKIPEDIA, 10

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DATA Sales Report Units sold, by game Charms 46 530 Clever Monster 67 335 Agiz 71 985 soccer 84 330 Total 270 180 Revenues Game

DATA

Sales Report



Units sold, by game
Charms	46 530
Clever Monster	67 335
Agiz	71 985
soccer	84 330
Total	270 180

Revenues


Game #3	Charms
Gross sales (retail price)	3 257 100
Less: Middlemen remittances	(1 132 756)
Net sales	2 124 344

Cost of goods sold
DVD inventory - Beginning of year	0
Add: Cost of goods manufactured	190 050
Add: Cost of additional orders	0
Cost of DVDs available for sale	190 050
Less: DVD inventory - End of year	126 383
Total cost of DVDs sold	63 667
Add: Download costs	10 333
Cost of DVDs sold	74 000

Cost of obsolete DVDs	139 236
Gross profit (Loss)	1 911 108

Game #4	Clever Monster
Gross sales (retail price)	5 050 200
Less: Middlemen remittances	(1 764 616)
Net sales	3 285 584

Cost of goods sold
DVD inventory - Beginning of year	0
Add: Cost of goods manufactured	208 150
Add: Cost of additional orders	0
Cost of DVDs available for sale	208 150
Less: DVD inventory - End of year	105 793
Total cost of DVDs sold	102 357
Add: Download costs	10 246
Cost of DVDs sold	112 603

Cost of obsolete DVDs	175 126
Gross profit (Loss)	2 997 856

Game #5	Agiz
Gross sales (retail price)	5 686 815
Less: Middlemen remittances	(1 970 859)
Net sales	3 715 956

Cost of goods sold
DVD inventory - Beginning of year	150 395
Add: Cost of goods manufactured	215 390
Add: Cost of additional orders	0
Cost of DVDs available for sale	365 785
Less: DVD inventory - End of year	278 807
Total cost of DVDs sold	86 978
Add: Download costs	23 530
Cost of DVDs sold	110 508

Gross profit (Loss)	3 605 448

Game #6	soccer
Gross sales (retail price)	5 481 515
Less: Middlemen remittances	(1 905 536)
Less: Pre-launch discount	( 30 557)
Net sales	3 545 423

Cost of goods sold
DVD inventory - Beginning of year	0
Add: Cost of goods manufactured	222 630
Add: Cost of additional orders	0
Cost of DVDs available for sale	222 630
Less: DVD inventory - End of year	124 915
Total cost of DVDs sold	97 715
Add: Download costs	34 593
Cost of DVDs sold	132 308

Gross profit (Loss)	3 413 115

Total of net sales	12 671 307

- Module 9: Pricing assignment - Group (10%) Break-even point

The break-even point in pricing is the point where costs and expenses are equal to revenue. At that point, there are not any expenses, not any loss.A break-even analysis will determine the lowest level to set a selling price in a market. Performing this analysis can help avoid costly mistakes, such as pricing too low and thus losing a large amount of money.The break-even calculation for a price, given a projected number of units sold, is: break-even price = variable cost + (fixed expenses / projected units)

In the Video Game simulation, these are the Variable and Fixed costs:

- Variable cost: cost of manufacturing the DVDs (Cost of DVDs sold) per unit. The Variable cost depends on the number of DVDs manufactured. In our case, well calculate it by dividing the Cost of DVDs sold by the number of units we expect to manufacture.
- Fixed costs (or Operating expenses): any other expenses that we run into for operating the company (communication, customer services, development, general and administrative expenses...).

Estimated completion time: 30 minutes - 1 hour

How to Proceed

Answer the following questions:

IMPORTANT: Explain your answers. A Yes/No answer of just a number will not be accepted as an answer.

1. In the strategy Room, find the Sales Report within the Report section. Analyze the data and calculate the break-even price of a new video game for the next projected period. Because the break-even price is conditioned by the Number of DVDs to produce, you will need to consider different numbers of DVDs to be produced to set a reasonable break-even price).
2. Once you have set a break-even price, check the number of projected sales for it. Will you sell those many units? Is it feasible? Will the projected sales exceed your sales goals? How much?
3. If the break-even price is finally the selling price, provided you sell all the projected units, what would be your revenues at that price? Will they exceed or fall short of your goals?
4. Following Question 3, if the break-even price is finally the selling price, provided you sell all the projected units, how will it affect the Net Income?
5. If selling prices and units sold were the projected ones, how could you increase the Net Income? What other variable could you adjust so Net Income increases? RUBRICS -

Criteria	Exceptional 10 points	Proficient 8 points	Above Average 7 points	Average 6 points	Incomplete 0 points	Criterion Score
Examples of pricing strategies	6 examples of pricing strategies were included. All choices are relevant and applicable.	5 examples of pricing strategies were included. Choices are fairly relevant and applicable.	4 examples of pricing strategies were included. Choices are fairly relevant and applicable.	Less than 3 relevant examples of pricing strategies were included.	No relevant examples were included.	Score of Examples of pricing strategies, / 10
Explanation of how the pricing strategy is applied	Explanation is very detailed and demonstrates an excellent understanding of each pricing strategy.	Explanation is detailed and demonstrates a good understanding of each pricing strategy.	Explanation could use more detail but demonstrates a good understanding of each pricing strategy.	Explanation does not demonstrate a clear understanding of each pricing strategy.	Explanation is not provided or is not on topic.	Score of Explanation of how the pricing strategy is applied, / 10
Identification of factors that make it suitable or not for pricing strategy	Explanation is well developed and clearly identifies 2 factors that make it a suitable or non suitable strategy.	Explanation is well developed clearly identifies 1 factor that make it a suitable or non suitable strategy.	Explanation is fairly well developed and identifies 1 factor that make it a suitable or non suitable strategy.	Explanation could be further developed.	Explanation is not provided.	Score of Identification of factors that make it suitable or not for pricing strategy, / 10
Format (500 words, 12 size font, headings, creative, title page)	Format is very well applied and project is proficient and creative	Missing 1 element	Missing 2 elements.	Missing 3 elements	Unacceptable	Score of Format (500 words, 12 size font, headings, creative, title page), / 10
Correct spelling and use of grammar rules.	0-1 errors	2-4 errors	5-7 errors	7-10 errors	10 or more errors	Score of Correct spelling and use of grammar rules., / 10
APA NO WIKIPEDIA	APA well done and complete. NO WIKIPEDIA	APA needs work, but cited	Some citations may be missing	APA needs work	IF APA MISSING IT IS AN AUTOMATIC ZERO ON THE ASSIGNMENT	Score of APA NO WIKIPEDIA, / 10