Assignment: Product Pricing and Reliability

$($Work must be clearly shown to earn any credit for the assignment$)$

Q$1$: John Kruda, an inventor, has come up with a cool all$-$in$-$one pocket$-$sized product that replaces TV$,$ cellphone, tablet and even a coffee as well as ice$-$cream maker $($Phew$....$ what an invention, don$$t you agree!$).$

He has priced all the components, production cost and overhead costs, and the total is $$472\mathrm{.}45.$ He wants to sell the product to a local wholesaler in such a way that John earns $45\%$ on the selling price to the wholesaler.

a$)$ Help John figure out the selling price for the cool product $($poor John, he is good at inventing but lacks business skills$)$

b$)$ What kind of pricing approach $($cost$+$ or price$-)$ is he using?

Q$2$: John Kruda had a rude awakening. The product above turned out to have some limitations: the TV picture projected by the cool product would not work beyond $36$; the ice$-$cream maker would serve only one small scoop at a time; the coffee maker can only handle $3-$oz at a time.

So$,$ he did a market survey to learn that he can sell his product to the wholesaler for only $$495.$ Realizing that $45\%$ profit is not possible, he would settle for a profit of $25\%$ on the selling price.

a$)$ How much profit does he want to earn per unit?

b$)$ What kind of pricing approach $($cost$+$ or price$-)$ is he using this time?

c$)$ By what amount must he reduce all his costs from the current cost of $$472\mathrm{.}45$ to meet his profit objective under the new market reality?

Q$3$: Calculate the reliability of the following three systems using the formula given below.

Components in parallel R $=1[(1-$R$1)*(1-$R$2)*(1-$R$3)*(1-$R$4)*...]$

Components in series R $=$ R$1*$R$2*$R$3*$R$4*...$

a$)$ b$)$

c$)$