Computron Inc

factory cost $ 768,000 69%

mark up (33.3%) $ 140,544 13%
QuotedUS price $ 908,544 82%
import duty (15% of quoted price in US) $ 136,282 12%
Transportationk chrge $ 67,200 6%
Total Europe Price $ 1,112,026 100%

*Mark up -before tax profit margin of 11%, R&D allowance 8%, administrative expense 6%

Year Europe sales Global sales

2005-06 $ 20,000,000 $ 176,000,000

Customer Konig
Year Purchase Nos
2005-06 $ 4,000,000 4

Competitor- Ruhr

offering price $ 872,000 27.5%

Competitor- EDAG
 840000
$ 272,026

18.3

77.5 $ 861,820

ministrative expense 6%

total sales to koing % of total Eu% of total Europe sales of Comp.

$ 4,000,000 20% 2%
 Dependence on contract
Operation of new europe plant

Requirment of contract
price can be max- 20 % more than the lowest bid

Market Challenges
Ruhr produces medium quality computer of general usage, developing high quality computer
EDAG produces good quality comp, trying to competite with Computron on price
Digitex is of fair quality but cost competitive

% of total Europe sales of Comp.

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when change the specification, change the brand name