Question: S 2 Prime Breakeven Calculation Thoughts I. Given overhead divided by projected sales = overhead per unit $ 1 , 0 0 0 , 0

S2 Prime Breakeven Calculation Thoughts
I. Given overhead divided by projected sales = overhead per unit
$1,000,0002,000,000=$.50 per unit (allocated fixed cost per unit)
Direct cost less quantity discounts
Direct cost per unit plus allocated fixed cost per unit
Calculate the even cent breakeven SRP for the Duo-Pak and the Refill.
A.,10% Brokers' commission and price to retailers*
II. Statement of Problem/Opportunity
A. Primary - Undetermined pricing strategy
B. Secondary
Target market not established
Positioning strategy in question
Undetermined IMC plan and budget
Competitors' reaction to a Prime introduction not analyzed
III. Recommended Action
A. Primary - Establish an initial SRP for the Duo-Pak of $?.?? And Refill of $?.??.
B. Secondary
?.??
?.??
?.??
?.??
As you establish a SRP for the Duo-Pak and Refill, a breakeven (BE) suggested retail price (SRP) must be determined
first using the given numbers (unit method is recommended). The brokers' commission and retailers' markup are given
as percent of selling.
Following BE set your actual SRP considering 1) Psychological pricing concepts, 2) Captive-Product concept, 3)
Premium pricing concept, 4) Competitive Analysis suggest best if Windex does not react S2 Prime Breakeven Calculation Thoughts I. Given overhead divided by projected sales = overhead per unit $1,000,000-:2,000,000=$.50 per unit (allocated fixed cost per unit) Direct cost less quantity discounts Direct cost per unit plus allocated fixed cost per unit Calculate the even cent breakeven SRP for the Duo-Pak and the Refill. A.10% Brokers' commission and price to retailers*^(**) markup on selling concept required II. Statement of Problem/Opportunity A. Primary - Undetermined pricing strategy B. Secondary Target market not established Positioning strategy in question Undetermined IMC plan and budget Competitors' reaction to a Prime introduction not analyzed III. Recommended Action A. Primary - Establish an initial SRP for the Duo-Pak of $?.?? And Refill of $?.??. B. Secondary ?.???.???.???.?? As you establish a SRP for the Duo-Pak and Refill, a breakeven (BE) suggested retail price (SRP) must be determined first using the given numbers (unit method is recommended). The brokers' commission and retailers' markup are given as percent of selling. Following BE set your actual SRP considering 1) Psychological pricing concepts, 2) Captive-Product concept, 3) Premium pricing concept, 4) Competitive Analysis suggest best if Windex does not react
 S2 Prime Breakeven Calculation Thoughts I. Given overhead divided by projected

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