Calculate the break-even cost for the product

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Reference no: EM133349587

Assignment:

Step 1: Picking a Price

In this activity, you will take the role of an executive responsible for determining the price on the product you are marketing for this course. You'll do so by checking out competitors, determining the factors relevant to calculating a break-even cost, and propose a markup range for the product. Based on your research, you'll draft a memo that would be sent to the relevant stakeholder to help the team come up with a final unit price for your product.

Step 2: Gathering Information

Take a moment and think of a discrete "unit" for the product you are marketing. This could be the cost of a ticket for an event, the cost of media (e.g., an album, book, or video game), the cost of a single good (a branded T-shirt or hat, the cost of an innovative piece of sports technology), and so forth. Your work in this activity should revolve around that single unit. You and your collaborators are working on determining the appropriate price per unit. Your collaborators include, among others, an accounting representative who will pull the final numbers you'll need for your calculations (for example, raw materials cost for something you are creating yourself). Your responsibility is to send an email to the group that contains the following information:

At what price are products similar to yours currently being sold?
How will you calculate the break-even cost for the product? (This will be a list of data you need to obtain from the accountant.)
What is the standard markup for the product? (This could be a range, a single number, or a percentage. To answer the question, you may rely on the competition's markups, or research industry standards and apply them to your product.)

You'll need to conduct independent research, especially for the first and last items on this list. Be sure to properly cite any sources you use.

Reference no: EM133349587

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