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How to price a product effectively
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PRICING Maxwell Ranasinghe
B.Sc. ( Business Administration) Hons. MAAT, Attorney at Law, CPM ( New Haven- USA)
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Variable cost Production
- Units Cloths meter p/u Price Per meter Variable Cost 0 1.5 10 0 1000 1.5 10 15000 2500 1.5 10 37500 5000 1.5 10 75000 6250 1.5 10 93750
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Fixed Cost Units
produced Fixed cost- e.g. rent Total Fixed cost 0 100000 100000 1000 100000 100000 2500 100000 100000 5000 100000 100000 6250 100000 100000
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Total Cost &
Income Units produced Variable Cost- VC @ 15 per unit Fixed cost –FC Total Cost VC+FC Total Income Selling Price Rs. 40.00 0 0 100000 100000 0 1000 15000 100000 115000 40000 2500 37500 100000 137500 100000 5000 75000 100000 175000 200000 6250 93750 100000 193750 250000
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BEP 4000 units
Rev. 1600 00
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