COMM 200 Chapter Notes - Chapter 13: Capital Asset, Psychological Pricing, Price Skimming

• School: Queen's University
• Department: Commerce
• Course: COMM 200
• Professor: Darren Mc Caugherty

Document Summary

The fundamentals of financial analysis: financial analysis covers 5 areas, revenue model, cost structure and cost drivers, margin requirements, cash operating cycle, capitalization requirements. Estimate an organization"s costs, and determine the nature of these costs (whether fixed or variable: 2. Management reflection - the need for capital: organizations have a need for capital, decisions have to be made to allocate this precious resource, the ability to acquire capital can be developed into a competitive advantage. Appendix - advanced topics relating to bep, pricing, and revenue model management. Using bep to ensure that full cash flow needs are realized: bep (6856$) + p + drp = (total fixed costs + profit objective + debt repayment)/(1 - variable cost %) Using bep to assist in the setting of price: optimal price point pricing (cost-plus pricing, opp = (total variable costs + total fixed costs + profit objective)/(quantity produced and.