Bus 640 week 5 assignment solution: price quotes and pricing


 

Price Quotes and Pricing Decisions Applied Problems


Please, exhaustive the forthcoming two applied problems in a Word or Excel muniment. Show all your calculations and clear-up your ends. Submit your assignment in the fall box by using the Assignment Submission dot.

1. Your order, Bright Paints, is one of a dozen companies manufacturing a specific inapprehensive sketch used for intercourse signs. The State Department of Transportation has named for tenders to accoutre 10,000 gallons of sky sky sky cerulean inapprehensive sketch to be delivered amid two months. You can foretell honest in a genesis run of the sky sky sky cerulean sketch and entertain resolute to bid on the job. You count your incremental absorbs for this job to be $76,200. This point abbreviate is measure, common in all in compliments to hundreds of abbreviates you entertain bid on balance the elapsed few years. Your pricing plan has been to devote a mark-up to incremental absorbs to reach at the bid value. Your mark-up has been better when you had full-supply of token and inferior when you had few or no token to intention. You entertain assembled facts about the mark-up trounce used and the percentage of abbreviates won at each mark-up trounce, as follows.

Mark-up trounce (%)

Percentage of abbreviates won at that trounce (%)

0

10

15

20

25

30

35

95.9

84.8

65.4

41.3

15.7

3.0

0.

a. Why would your order entertain bid delay a cipher mark-up on some elapsed tenders? Why didn’t it win all of those abbreviates?

b. What is the bid value that maximizes the expected offering of the abbreviate?

c. Why, or why not, is the fixed-value command of order slight to be the best one to use for this abbreviate?

2. In circumspect the incremental absorb of a point contrivance, how would you handle the feasible advenient absorbs of a lawsuit that may happen as a end of this contrivance, where the absorb of the lawsuit force class from $10,000 to $500,000 delay an associated likelihood disposal?