Product Pricing:

Clarissa wants to sell a local advertising calendar. She knows there are 2000 households in her community, and estimates 30 percent will buy the calendar. The printing company will charge a $400 set up fee and calenars will cost $4.00 each to print.

What price will she need to charge to cover all costs and make a $2000 total profit.

Must show all calculations.

Would this method, used above, be the best pricing strategy to apply to create value and maximize revenue for Clarissa? Justify your conclusion either positively or negatively.