Question: Please answer 4.A to 4.E 4. Pricing Analysis PadWorks thinks the largest hurdle to purchase is the initial price of the tablet and would like

 Please answer 4.A to 4.E 4. Pricing Analysis PadWorks thinks the

Please answer 4.A to 4.E

4. Pricing Analysis PadWorks thinks the largest hurdle to purchase is the initial price of the tablet and would like to know if they should lower the price of the tablet to entice more people to buy it, which should increase the number of refill sales of ancillary product sold over time. 4.A. Using the number of tablets necessary to meet the sales goal you calculated in question 2 as the sales goal unit sales, calculate a break-even, wholesale price for the tablets - rounded to the nearest dollar. 4A. Break-even wholesale price: $ Break-even wholesale price = variable cost + (Fixed Costs/Sales Goal Units) 4.B. Using the break-even cost to wholesalers calculated in 4.A, calculate the new break-even volume 4.B.New break-even volume: New break-even volume = Fixed Costs/ (4A Break-even wholesale price - Variable costs) 4.C. Based on your calculations in 4A and 4B is it feasible to reduce the cost of the tablets to the break-even number? Support your answer. 4.C. 4D. Using the wholesale break-even price calculated in 4.A. determine a new wholesaler price for the tablet based on a PadWorks earning a 25% markup. 4D. New wholesale price:$ New Wholesale price = (4A Wholesale Break-even price)/(1-%Markup) 2 N 4E. The manufacturer suggested retail price for the tablet needs to allow wholesalers to enjoy a 25% mark-up as well. Using the mark-up price calculated in 4D. what should the new suggested retail price be (you can round your figure to the nearest 10 dollars): New MSRP (Retail Price) = (4D New Wholesale Price)/(1- %Markup) 4.E. New MSRP (Retail Price):$ 4. Pricing Analysis PadWorks thinks the largest hurdle to purchase is the initial price of the tablet and would like to know if they should lower the price of the tablet to entice more people to buy it, which should increase the number of refill sales of ancillary product sold over time. 4.A. Using the number of tablets necessary to meet the sales goal you calculated in question 2 as the sales goal unit sales, calculate a break-even, wholesale price for the tablets - rounded to the nearest dollar. 4A. Break-even wholesale price: $ Break-even wholesale price = variable cost + (Fixed Costs/Sales Goal Units) 4.B. Using the break-even cost to wholesalers calculated in 4.A, calculate the new break-even volume 4.B.New break-even volume: New break-even volume = Fixed Costs/ (4A Break-even wholesale price - Variable costs) 4.C. Based on your calculations in 4A and 4B is it feasible to reduce the cost of the tablets to the break-even number? Support your answer. 4.C. 4D. Using the wholesale break-even price calculated in 4.A. determine a new wholesaler price for the tablet based on a PadWorks earning a 25% markup. 4D. New wholesale price:$ New Wholesale price = (4A Wholesale Break-even price)/(1-%Markup) 2 N 4E. The manufacturer suggested retail price for the tablet needs to allow wholesalers to enjoy a 25% mark-up as well. Using the mark-up price calculated in 4D. what should the new suggested retail price be (you can round your figure to the nearest 10 dollars): New MSRP (Retail Price) = (4D New Wholesale Price)/(1- %Markup) 4.E. New MSRP (Retail Price):$

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!