Cost-Based Pricing Strategies

• Break Even Analysis

  • Fixed Costs (FC); Variable Costs (VC)
  • TC (total cost) = FC + VC

TC = 100,000 + (11.50 X 4,000)

TC = 100,000 + 46,000

TC = 146,000

Break Even Point

146,000 _ 4,000

$36.50 per soccer ball

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