BUS 201 Chapter 13: BUS 201 - Ch. 13

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Gordon Rein

Document Summary

Pricing: determining what a company will receive in exchange for its products. Pricing objectives: the goals hat sellers hope to achieve in pricing products for sale. Profit maximinzin objectives: revenue = price * units sold, companies want to set the selling price to sell the number of units that will generate the highest possible total pro ts. Market-share (market penetration) objectives: a company"s percentage of the total industry sales for a speci c product type, companies may initially set low prices for new products to establish market share (or market penetration) Pricing for e-business objectives: many e-businesses reduce both costs and prices because of the internet"s unique market abilities, both consumers and business buyers can get lower prices by joining together for greater purchasing power. Breakeven analysis: cost-volume-pro t relationships: variable costs: cost that changes with the quantity of a product produced and sold, fixed costs: cost that is incurred regardless of the quantity of a product produced and sold.