I cannot figure this exercise out, It involves pricing methods and calculations

MAR 200 - Pricing Exercise Part 1 Company Objectives and Pricing Methods 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. Customer Orientation - Value Pricing The target profit pricing gives me a starting point. There are other pricing considerations however. Consumers could use the price of this tote to judge its quality - is it priced appropriately for a custom item? If I change the price what would the effect be on my Break Even Volume? Competitor Orientation - Competitive Pricing What is the competition like for totes and purses of this type - is it oligopolistic, monopolistic, or pure competition? How would this affect how we might set a price. MAR 200 - Pricing Exercise Part 2 Customer Considerations - Elasticity of Demand - The price we calculated in the previous problem, along with the Break Even volume, has been filled in below. - If I raise the price of the tote, I assume that the demand will fall; if I lower the price of the tote, I assume the demand will rise. - I would like to know if I will still make a profit at the higher or lower prices, because I know that my variable costs will change depending on the volume. - Calculate the remaining rows and columns in the chart below to see what my total costs and profits will be at each price point. (1) Price $81 $71 $61 $51 $41 (2) (3) Unit Expected Demand Unit or Sales Demand Needed to or Sales at Break Given Even Price 145 (4) Total Revenue (1) X (3) (5) Total Costs* 6,000 6,800 7,600 8,400 9,200 Note: Assumes fixed costs of $4,500 and constant unit variable costs of $30 (6) Profit (4) - (5) MAR 200 - Pricing Exercise Part 3 We can also calculate the Elasticity of Demand (PEoD) for a product - or in other words how sensitive are customers to changes in product pricing. The calculation for Elasticity of Demand is: Elasticity of Demand (PEoD) = % change in quantity demanded % change in price where % change in quantity demanded = Old Demand - New Demand Old Demand and % change in price = Old Price - New Price Old Price The rule of thumb in judging the Elasticity of Demand is: If PEoD > 1 then Demand is Price Elastic (Demand is sensitive to price changes) If PEoD