Project Details

The Acme Gadget Company designs and manufactures consumer gadgets. Last year, Acme began development of three prototype gadgets with the intention of bringing all three to market.However, a recent downturn in the economy has forced Acme to reconsider due to decreased consumer demand that is projected to remain low for 2-3 years. As such, Acme will bring only one of the prototypes to market. They've hired a consulting firm to advise which prototype to bring to market. The managing partner of the consulting firm has assigned you to conduct the following analyses: Production analysis, Pricing Analysis, Financing analysis and Break-even analysis. The information you need to conduct each analysis is provided below.

Pricing Analysis

Acme's Marketing team has established a MSRP for each gadget based on the feedback of consumers and tech journalists that were selected to review the prototype gadgets. The MSRP has been set as $449, $499, and $425 for Gadgets A, B and C respectively. Acme's sales team wishes to establish a net price (to retailers) that will allow retailers a series of markdowns for the gadget, first by 15% during regular sale periods (to occur up to 3 times a year), with room for a second discount of 10% during special sale periods (Black Friday and Boxing Day), while still allowing the retailer a mark-up of at least 20% over the net price. Find the maximum net price for each gadget and determine how this net price impacts the breakeven analysis below.

I have already solved the production analysis (which is why I didn't include it in the equation) and am working on the pricing analysis now. I don't need the solved equation, I just need to know what the equation would be. Any help would be greatly appreciated.