Electric car producer EV 3100, is a company manufacturing cars and has been selling 50 units...

   

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Electric car producer EV 3100, is a company manufacturing cars and has been selling 50 units per month for its sedan variant at a price of P950,000 per unit. The company's unit variable costs for manufacturing the car is at P450,000 per unit. Next year, the CEO, is considering promoting a new model and wants to add an additional P2,000,000 budget for advertising the new car variant. If the introductory price of the new model is at 10% lower than the sedan's price the following needs to be clarified by Marketing and Finance Department. (10 points)How many additional units must Company EV 3100 sell per month to cover the advertising budget and what is the total units needed to be sold just to break even? On the other hand, the president would like to introduce its new compact car series also by next year, which is generously selling at 100 units per month with a price tag of P750,000 and Unit variable cost of 35% of the price. The CEO asked her marketing team to present price variants for the new model with the following price considerations. There is no change in the monthly fixed cost of P650,000.- (10 points)Relative on the statement above, would the results be the same if ever the marketing department was able to determine an expected increase in the demand for compact cars due to high gasoline prices by as much as 30% Would the marketing team be able to determine increased profit based on a price consideration of 7% decrease. How much units (increase/decrease) will be the GBE Results? Also (20 points) Compute for the the GBE for prospective price changes and which do you think is the best price strategy for the introduction of the new car. a. Price will be set at 15% higher b. Price will be set at 7% higher c. Price will be set at 7% lower d. Price will be set at 15% lower (20 points) Based on the computation that the marketing team did on prospective prices, Identify the New Break Even Points per different price scenarios and compute each change in profit or loss if there is an expected sales of 120 units. (20 points) Compute for the the GBE for prospective price changes and which do you think is the best price strategy for the introduction of the new car. a. Price will be set at 15% higher b. Price will be set at 7% higher c. Price will be set at 7% lower d. Price will be set at 15% lower (20 points) Based on the computation that the marketing team did on prospective prices, Identify the New Break Even Points per different price scenarios and compute each change in profit or loss if there is an expected sales of 120 units. Electric car producer EV 3100, is a company manufacturing cars and has been selling 50 units per month for its sedan variant at a price of P950,000 per unit. The company's unit variable costs for manufacturing the car is at P450,000 per unit. Next year, the CEO, is considering promoting a new model and wants to add an additional P2,000,000 budget for advertising the new car variant. If the introductory price of the new model is at 10% lower than the sedan's price the following needs to be clarified by Marketing and Finance Department. (10 points)How many additional units must Company EV 3100 sell per month to cover the advertising budget and what is the total units needed to be sold just to break even? On the other hand, the president would like to introduce its new compact car series also by next year, which is generously selling at 100 units per month with a price tag of P750,000 and Unit variable cost of 35% of the price. The CEO asked her marketing team to present price variants for the new model with the following price considerations. There is no change in the monthly fixed cost of P650,000.- (10 points)Relative on the statement above, would the results be the same if ever the marketing department was able to determine an expected increase in the demand for compact cars due to high gasoline prices by as much as 30% Would the marketing team be able to determine increased profit based on a price consideration of 7% decrease. How much units (increase/decrease) will be the GBE Results? Also (20 points) Compute for the the GBE for prospective price changes and which do you think is the best price strategy for the introduction of the new car. a. Price will be set at 15% higher b. Price will be set at 7% higher c. Price will be set at 7% lower d. Price will be set at 15% lower (20 points) Based on the computation that the marketing team did on prospective prices, Identify the New Break Even Points per different price scenarios and compute each change in profit or loss if there is an expected sales of 120 units. (20 points) Compute for the the GBE for prospective price changes and which do you think is the best price strategy for the introduction of the new car. a. Price will be set at 15% higher b. Price will be set at 7% higher c. Price will be set at 7% lower d. Price will be set at 15% lower (20 points) Based on the computation that the marketing team did on prospective prices, Identify the New Break Even Points per different price scenarios and compute each change in profit or loss if there is an expected sales of 120 units.

Answer rating: 100% (QA)

Analyzing EV 3100s Pricing Strategies for New Compact Car Part 1 New Sedan Model a Additional Units for Breakeven New monthly fixed cost P650000 P2000... View the full answer