100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
MNE3701 ASSIGNMENT 4 SEMESTER 2 2023 $4.39   Add to cart

Essay

MNE3701 ASSIGNMENT 4 SEMESTER 2 2023

 24 views  1 purchase
  • Course
  • Institution

MNE3701 ASSIGNMENT 4 SEMESTER 2 2023

Preview 2 out of 10  pages

  • October 13, 2023
  • 10
  • 2023/2024
  • Essay
  • Unknown
  • A+
avatar-seller
MNE3701 ASSIGNMENT 4 2023




DISCLAIMER

The MNE3701 assignment 4 semester 2 2023 is a guide that help students to
answer their 4th assessment. Therefore, students can use as the document
contains different pools of questions. Those who need further assistance may
contact the given details:

CONTACT NUMBER:

071 751 3144

EMAIL

muzavazi47@gmail.com

, MNE3701 ASSIGNMENT 4 2023

Having acquired sufficient knowledge and skills on entrepreneurship and small
business management, you must demonstrate practical competencies in
applying a pricing system and promotional planning. Think of any business you
would like to start and answer the following questions:

QUESTION 1

By using practical examples, critically discuss how you would applying a
pricing system in your business. (10)

The importance of setting a price is seen in the revenue equation in business. The
price of a product forms half of the total equation, where sales X price = revenue. A
small change in price can make a huge difference in revenue. The price therefore has
a dual influence on the total sales revenue: directly, as part of the gross revenue
equation, and an indirect impact on quantity sold. Bear in mind that because of the
complex nature of service pricing, this study unit focuses primarily on product (goods)
pricing. Because price equals total cost plus profit, a careful study of cost in a business
may keep the business from pricing too low. The concept “average pricing” is used
when the behaviour of variable and fixed cost is treated equally. Average pricing is
calculated by means of the total cost divided by the quantity sold over a certain period.

Break-even analysis

In order to develop a pricing system, an entrepreneur should understand break-even
analysis and mark-up pricing. Cost break-even analysis is used to determine the
quantity point at which the product will generate enough revenue to start showing a
profit.

Mark-up pricing

There is a difference between the mark-up on cost and the mark-up on selling price. A
farmer selling chickens incurs certain costs in raising chickens to the stage that they
are in a selling condition (e.g. food, medicine, labour and energy costs). The farmer
calculates the break-even cost and then adds a mark-up. The chickens are sold to an
intermediary (e.g. Chicken Licken). The retailer calculates his or her mark-up
percentage on the selling price of the end product, the selling price also incorporating
market demand. The following variables need to be included:

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller tatendamuzavazi. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $4.39. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82871 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$4.39  1x  sold
  • (0)
  Add to cart