Please help with all three questions and show work. Thank you!

MARKETING ANALYTICS: Case Study Name: ____________________

Date: ________________________

		Case Title
		Pricing: Acme Lamp Company

You are the marketing manager for Acme Lamp Company. Acme specializes in the manufacture of lamps (light bulbs) for industrial applications. You are in charge of launching Acmes new LED-12 light emitting diode (LED) lamp. The LED-12 uses an array of 12 high-intensity LEDs to replace a standard medium-base incandescent lamp. As part of the launch plan, you must select a price. You have the following data:

Attribute	Data	Description
Investment	$20,000	Money invested to develop product
Fixed Cost	$10,000	Overhead costs not changing with quantity produced
Variable Cost	$10	Labor and material costs to produce each unit
Unit Sales	5,000/ year	Quantity of units forecast to sell at $20 per unit
Unit Sales, Max	10,000/ year	Constraint on production; Maximum production quantity
% Markup	20%	Desired return on sales
Target ROI	20%	Target return on investment for new projects
LED-12: Life	24 months	Long life due to rugged LED design
Existing lamps: Price	$1	Price of existing lamps: Incandescent and CFL
Existing lamps: Life	3 months	Shortened life due to severe conditions in industrial plant
Existing lamps: Labor	$20/ lamp to replace	Labor cost to replace existing lamp
Price elasticity	1	% change in demand given a % change in price

1. Calculate the target price using Markup/ Cost-Plus pricing.

Pricing Calculations	Results
Unit Cost
Markup Price

2. Calculate the target price using Target Return pricing.

Pricing Calculations	Results
Unit Cost
Target-Return Price

3. Calculate the target price using Value-In-Use pricing. Assume industrial plant uses 100 lamps.

Pricing Calculations	Results
Current cost
Value In Use Price