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Economics Assignment Pricing

   

Added on  2020-05-04

7 Pages997 Words84 Views
1 Name:Course Professor’s nameUniversity nameCity, StateDate of submissionQuestion 1
Economics Assignment Pricing_1
2 Explain your rationale for setting prices.Type of boat Present year salesAdjustment of inflation (3%)No. of BoatsSales priceB-167128000734184024030591B-29--B-33128160001320048024055002B-35103950010706852404462The rationale of setting the prices is based on the adjusted inflated prices of 3% in terms of sales then divided by the number of units of the boats to get selling price per unit. The reason why only inflation was factored in and not the exchange rate is because it is only meant for domestic use. If the boats were for export, then inflation and currency exchange would have been factored in. The rationale for setting selling prices is simply adjusting inflation costs and dividing it with the number of boats that have been manufactured(Cagan, 2006). Question 2countryExchange ratesExpected inflation rateEstimated cost of freightDenmarkDanish Kroner = 0.733%1550015965SwedenSwedish Kroner = 0.731%1250012625PolandZloty = 2.0222%1900023180
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3UKEnglish Pound = 11.313%2250023175Germany Euro = 7.912%2050020910RussiaRouble = 4.2215%2500028750The production plan for Billing AS for the coming year is such that, the type of boat with the highest profit is needed in the highest unit production. In this case, the family boats will move the highest number of units(Gibson, 2013).Question 3Sales marginBilling AS Sales MarginIn NOK As a percentageSales Revenue20,983.50Variable cost; direct labor and materials1364065%Fixed; production9454.5 Product design costs13456.4Administration costs6503.1Marketing costs230011Total fixed costs524025Profit before taxes2103.510Company profits
Economics Assignment Pricing_3

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