Assignment: Unit 4.5b - Price Assignment

IB BUSINESS & MGMT HL C 2024
2024-08-16T19:43:27Z

Due: Oct 20, 2024 by 11:59pm

1. Santa Clarita Toy Co. makes toy trolleys. The cost of producing one unit is $15. The company uses a mark-up of 90%. Calculate its selling price for the product.

2. Santa Clarita Toy Co. sells a cheaper toy for $1.98 for which its production costs of $1.20. Calculate the percentage profit margin (mark-up) on this toy.

3. Distinguish between cost-plus pricing and contribution pricing.

4. Explain why firms might choose to use penetration pricing.

5. Explain why airline tickets are more expensive during the holiday season, such as during summer periods.

1. Santa Clarita Toy Co. makes toy trolleys. The cost of producing one unit is $15. The company uses a mark-up of 90%. Calculate its selling price for the product.

2. Santa Clarita Toy Co. sells a cheaper toy for $1.98 for which its production costs of $1.20. Calculate the percentage profit margin (mark-up) on this toy.

3. Distinguish between cost-plus pricing and contribution pricing.

4. Explain why firms might choose to use penetration pricing.

5. Explain why airline tickets are more expensive during the holiday season, such as during summer periods.