What is the best selling price?
United States. Small Business Administration. Management Assistance Division. Support Services Section
U.S. Small Business Administration, Management Assistance, Support Services Section, 1982 - Antiques & Collectibles - 6 pages
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12-month period 25 cents 37 cents 40-percent contribution 42 cents 60 percent amount of machine approach to pricing approach to set available machine hours best price breakeven point bring cents divided contribute toward profit Contribution per Labor contribution percentage contribution-per Contribution-Per-Pound desired profit determine direct costing approach direct costs—material direct labor costs divided by 60 dollar contribution-per-machine-hour duct duction example fairly easy Formula for setting Four Layer Cake Gail Manufacturing Company given time period Keep in mind Labor Hour limiting factor machine hours available manufacturing and nonmanufacturing manufacturing overhead mark-on market conditions material costs maximize profit maximize your profit ment nonmanufacturing overhead number old products order to maximize orders for product overhead costs owner-manager per-machine-hour percentage of direct Price For Product pricing formula raw material required contribution selling price set a price setting prices suppose Total direct costs unit sales volume unit sold units at $4 units per hour