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Product Pricing: Single Product Sue bee Honey is one of the largest processors of its product for the retail market, Assume that one of its

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Product Pricing: Single Product Sue bee Honey is one of the largest processors of its product for the retail market, Assume that one of its plants has annual fived costs tocaing $9,600,000, or which 53,600.000 is for administrative. and selling eftorts. Svies are anticipated to be 800,000 cares a year. Variable costs for processing ane 524 per case, and varable sellang eapenses are 25 percent of selling price. There are no variable administrative expenses. If the company seures a pretax profit of 56,000,000, what is the selling price per case? Round answer to two decimal places price percase Cost-fesed Pricing and Markups with variable Costs Compu Services provides computerzed inventory consulting The office and computer expenses are 5600.000 annually and are not assigned to specificjobs. The consulting hours available for the year total 20.000, and the wersge consulting heur has 530 ot variable costs. (a) if the company desires a profit of 180,000 , whst should it charge per hour? (6) What is the markup on variable costs it the deured proed is 5120.000 (c) if the desred profitis 5120,000 , what is the markup on vartable costs to cover (1) unassigned costs and (2) debired profic? Markup to cover unasseged costs Markup to conec desired profits Fricsson is a larse global company providing hardware, software, and related services foc radio-access networks within mobie telecomvrunication syseems Assume that it is developing a few networking system for smaller, prwate thephone companies. To attract smalf companies, Enicsson must keep the price low without givis up too many of the features of larger netwokking fystem A marketing research study conducted on the company's behaif found that the price range must be 540,000 to 560,000 , Management has deremined a target pice to be 552,000 The company mrinimum profit percentage of sales is nermally 15%, but the company is willing to reduce it to 12% to set the new product on the market. The fived cosss for the first year are anticipated to be 56,400,000. If sales reach 400 installed networks, the company needs to khow how much it can spend on var able costs, which are primarly related to installation Required a. What is the amount of total cost allowed if the 12% prefit target is allowed and the ado installations sales target is met? show the anount for fixed and for varible costs. Fued costs: 1 Varable corss s himed rosts 1 Variable costs 1

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