MAR 200 - Pricing Exercise Part 2 Customer Considerations - Elasticity of Demand - The price...

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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 (2) (3) (4) (5) (6) Unit Expected Total Total Profit Demand or Sales Unit Revenue Costs* (4)-(5) Demand (1) X (3) Needed to or Sales at Break Given Even Price $81 6,000 $71 6,800 $61 145 7,600 $51 8,400 $41 9,200 Note: Assumes fixed costs of $4,500 and constant unit variable costs of $30 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 (2) (3) (4) (5) (6) Unit Expected Total Total Profit Demand or Sales Unit Revenue Costs* (4)-(5) Demand (1) X (3) Needed to or Sales at Break Given Even Price $81 6,000 $71 6,800 $61 145 7,600 $51 8,400 $41 9,200 Note: Assumes fixed costs of $4,500 and constant unit variable costs of $30