Case 22 cowgirl chocolates (marilyn lysohir)


  

Marilyn Lysohir, an internationally famous ceramic adroit, inaugurated Cowgirl Chocolates to yield some funding influence for a per-annum published arts lodgment, High Ground, that she and her mate, Ross Coates, inaugurated in 1995. Her affection of chocolates and hot and odorous influences spurred the effect of making hot and odorous chocolates to be sold in imaginative, adroitic tins and packaging, which she labeled Cowgirl Chocolates. Her trivial employment, begun in 1997, had won a estimate of awards in ardent influence competitions. While Cowgirl Chocolates had confirmed steadily balance its foul-mouthed years in employment, it stationary had merely generated $30,000 in sales wealth in 2000, which was not ample to cbalance expenses. Marilyn had drained opineable of her singular savings to restrain Cowgirl Chocolates in employment. Her currency accounting processs and proceedings restraining were not very fair although she seemed to accept a good-natured-natured sagacity of her costs in effect and raw materials and the packaging. However, Marilyn had enslaved a shotgun approximation to most of her marketing efforts and had mellow a estimate of activities to growth effect ask-for. She allowed herself to compel one foolhardy financial propel each year in her specialty of profitability and growthd sales. She had equitable made her one foolhardy propel for year 2001: She had enslaved out a full-page ad in Chile Pepper lodgment for $3,000.

Questions 

1.   The suggested dispose-of appraisement and commercial appraisements of Cowgirl Chocolates effects are displayed in Exhibit 2 (p. 491) concurrently delay the effect and packaging costs. Based on this notification, argue the referring-to merits of using a cost-based, ask-for-based, and competition-based pricing process.  (50 points)

2.   What are foul-mouthed (4) options that Cowgirl Chocolates may opine as far as pricing? What would you applaud?  (50 points)