E.

Price Policy

In regards of the pricing in W3 (Wallet with WIFI), the combination of cost-plus

pricing has been chosen. Cost-plus pricing strategy is simply calculating the cost of
materials used and adding a mark-up.

To illustrate the pricing of W3 (Wallet with WIFI), the following below are the
material needed and its prices, the total costs, and how much would be the profit in
every purchase.

Materials Quantity Price

Pocket WIFI 1 piece P445

leather P90

Diamond chisel 1 piece P95

sewing awl 1 piece 12 cm P48

waxed thread 10 meters P39

cutting mat 1-piece A5 size P50

small clamps 4 pieces P20

rubber mallet 1 piece P39

fine grit sandpaper 1 piece P5
edge slicker 1 piece P90

Total cost P921

Mark up = selling price – cost

= P999 – P921

= P78