Ti tl e: Vi de o Game Pri c i ng O bj e c ti ve : F i nd out the apt pri c i ng for the vi de o game produc e d by the US C ompan y to be sol d i n J apan, I ndi

a C ase De sc ri pti on: 1 . US Vi de o Game manuf ac turi ng c ompa ny i s pe rmi tte d to produc e 2 .5 L ak hs uni ts of vi de o game pe r ye ar. 2 . At pre se nt manufac t uri n g 2 l ak hs uni ts of the produc t at a fi xe d c ost of $ 22 L ak hs 3 . The vari abl e c ost of prod uc ti on i s $ 9 / Uni t 4 . The mark up pri c i ng for profi t i s about 10 % 5 . 1 00 00 Uni ts more for e xports have to be produc e d for exports.

6. C ost of F rei ght and C ustoms duty i s $ 1 + 50 % of dome sti c pri c e
Anal ysi s: F i xe d C ost of Produc ti on/ Uni t = 2 20 00 00 / 2 10 00 0 = Rs 10 .4 7 / Uni t Vari abl e C ost of Produc ti on/ U ni t = Rs. 9 / Uni t Rs. 1 9. 47 / Uni t C ost of Produc ti o n Total C ost of Produc ti on pe r Uni t - $ 20 Dome sti c Pri c e - $ 22 F re i ght C harge = $ 1 Total C ost = $ 2 0 + 1 + (1 / 2 ) * $ 2 0 = $ 3 1 Mark Up Pri c i ng - 1 0 % F i nal C ost - 1. 1 * 3 1 = $ 34 .1 0 C onc l usi on: The fi nal c ost of the Vi de o Game produc t i n $ Te rms for the I nte rnati onal Mark e t i s $ 34 .1 0 .

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