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1 year ago

How did Ben Casnocha decide on a price for his product?

Business

2 answers:

Anna007 [38]1 year ago

7 0

Answer:

Ben Casnocha is a young entrepreneur and venture capital investor who has written 2 books (The Alliance, and The Start-Up of You). You could say he hit the jackpot with his Comcate software that provides local governments with CRM solutions.

On his management book, The Alliance, he explains how he priced his software and it was fairly simple: he first calculated how much money his customer's could save with his software and then priced his product below that amount.

This logic is very simple and can be used by everyone, e.g. my customer has a problem that is costing them $10, and I can sell them a solution for $8.

romanna [79]1 year ago

3 0

Answer:

We figured out how much the problem was costing the customer — and priced the product around that number.

Explanation:

i was writing a paper and had this in my notes

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2 years ago

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Toni makes apple pies for the local bakery. When Toni works with an assistant, she produces 60% more apple pies and works 20% fe

lions [1.4K]

Answer:

200 % is the answer.

Explanation:

Toni makes x be apple pies .

and Jane works for y hours.

therefore, he makes x apple pies in y hours

which implies he makes $\frac{x}{y}$ apple pies per hour

Now with help of an assistant:

Toni makes 60% more apple pies i.e. x + 0.6x = 1.6x apple pies

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simplifying we get

200

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2 years ago

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A new machine with a purchase price of $109,000, with transportation costs of $12,000, installation costs of $5,000, and special

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2 years ago

Suppose the farm equipment manufacturer from the previous question was able to charge $30,000 per tractor, and produces and sell

LiRa [457]

Given Information:

Rent = $20,000,000

Materials and Wages = $10,000/tractor

Number of tractors = 2,000

Amount spent on R&D = $3 million

Required Information:

Lowest price to sell a tractor = ?

Answer:

Lowest price to sell a tractor = at least $20,000

Calculations & Explanation:

The company needs to sell at least at a price that all of its manufacturing cost can be recovered without the profit margin.

This happens at a break-even point where total revenue equals the total manufacturing cost.

Total manufacturing cost = Total revenue

The revenue is number of tractors multiplied by some price x

Total revenue = 2,000*x

Total manufacturing cost = fixed cost + Variable cost

Total manufacturing cost = 20,000,000 + 2,000(10,000)

Total manufacturing cost = 20,000,000 + 20,000,000

Total manufacturing cost = 40,000,000

so,

Total manufacturing cost = Total revenue

40,000,000 = 2,000*x

x = 40,000,000/2,000

x = $20,000

Therefore, the lowest price to sell each tractor should be atleast $20,000

Note: The R&D cost is not usually included in such scenarios because R&D cost is sunk and should not be added in these calculations.

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2 years ago

On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $180 million. The bonds mat

pychu [463]

Answer:

Bond Price = $149.1136446 million rounded off to $149.11

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 180 million * 0.08 * 6/12 = 7.2 million

Total periods (n) = 20 * 2 = 40

r or YTM = 0.1 * 6/12 = 0.05 or 5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 7.2 * [( 1 - (1+0.05)^-40) / 0.05] + 180 / (1+0.05)^40

Bond Price = $149.1136446 million rounded off to $149.11

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2 years ago