Kodak sells Gold Plus through retailers. The retail price for Kodak Gold Plus is $3.49 and Kodak's per unit revenue is $2.79. Calculate the retailer's margin and markup as a percentage.

Retail margin % age (4 pts.)

Retail Markup % age (4 pts.)

 What is Kodak's cost per unit for the Gold Plus product? (8 pts.)

 How much incremental sales (by %) is required to break even given the retail price decrease by 15%, assuming no reaction from competition and collaborators? (14 pts.)

 Based on the result you get from Retail Markup % age, to achieve the incremental sales goal for break-even purpose, how much additional market share (by %) Kodak will need to have?   (6 pts.)

 

In order to be profitable, Virgin Mobile should set a price per minute that can make its CLV greater than zero. The price/min should be comparable to other carriers at the same time so that to not trigger price wars. Virgin Mobile also does not want to leave too much money on the table, which means it would like to optimize its overall profits. Consider these conditions, what would be a good price/min to set for Virgin Mobile? 

 Please use reasonable assumptions for some numbers to solve this price decision problem based on the information in the case.