User Account

All Pages

What are the costs to the device company

Assignment Help Business Management
Reference no: EM132256342

Medical device company MedDevices, Inc. is a manufacturer of a combination insulin-pump and blood glucose monitoring device. The device, called PumpNMeter, provides insulin to diabetes patients, monitors patient's blood glucose levels and relays insulin dosing and blood glucose levels to physicians treating the patients. Patients use PumpNMeter is currently the only such device on the market. Assume that the price elasticity of demand is -0.5 for PumpNMeter. The current market price is $6,400 per device, with a total of 400,000 sold each year. At the $6,400 price, the manufacturer makes a profit of $1,400 for every device it sells.

[HINT: What are the costs to the device company for manufacturing each per pump?]

An increase in the price of one of the components needed to manufacture PumpNMeter raises the cost of production by 10%

[HINT: What are MedDevices' manufacturing costs after this price increase that they must pay for the PumpNMeter components?]

What would likely be the number of devices sold if MedDevices responds by doing the following:

a. Keeps the price at $6,400 per glucose meter

b. Raises the price by 10%  

c. Raises the price by 15%.

Which of these three pricing choices yields the greatest profit to MedDevices? How much is the profit difference between these choices?

Reference no: EM132256342

Questions Cloud

Explain the steps in the personal selling process : Explain the steps in the personal selling process. How does B2B personal selling differ from B2C personal selling?
Neoclassical growth theory : Neoclassical growth theory implies that a doubling of the labour force leads to a doubling of aggregate output
Long and short run equilibrium : If current GDP is 8500, the economy is in long and short run equilibrium.
Design kanban system for oldest production line : Your team is to design a Kanban system for the oldest production line but you are limited to containers that hold 7 units each.
What are the costs to the device company : An increase in the price of one of the components needed to manufacture PumpNMeter raises the cost of production by 10%
In what ways were their governments and laws similar : In what ways were the social conditions of British India and the 1950s United States similar? In what ways were their governments and laws similar?
Disadvantages of publicity in firm promotion strategy : Explain how publicity differs from advertising. What are the advantages and disadvantages of publicity in a firm's promotion strategy?
Should you ask your boss if you can use : Should you ask your boss if you can use the money to buy two tickets? Why? In flying or lying in business class
Determine which type of intellectual property law applies : Create new or improved products, services, and works such as movies and albums if others can readily copy and profit from their efforts.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd