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  • Pricing Strat Act

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    John Mhel Alcantara
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    The document discusses formulas for calculating gross margin and markup price. It provides examples of using the formulas to determine the retail price for plain and cheese potato fries sold by Ongville Supermarket, given the wholesale cost of Php 6.30 and a target gross margin of 60%. Using the gross margin formula, the retail price is calculated as Php 15.75 for both products. The document also briefly mentions the concept of keystone pricing.

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    Pricing strategy information.

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    The document discusses formulas for calculating gross margin and markup price. It provides examples of using the formulas to determine the retail price for plain and cheese potato fries sold by Ongville Supermarket, given the wholesale cost of Php 6.30 and a target gross margin of 60%. Using the gross margin formula, the retail price is calculated as Php 15.75 for both products. The document also briefly mentions the concept of keystone pricing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views1 page

    Pricing Strat Act

    Uploaded by

    John Mhel Alcantara
    The document discusses formulas for calculating gross margin and markup price. It provides examples of using the formulas to determine the retail price for plain and cheese potato fries sold by Ongville Supermarket, given the wholesale cost of Php 6.30 and a target gross margin of 60%. Using the gross margin formula, the retail price is calculated as Php 15.75 for both products. The document also briefly mentions the concept of keystone pricing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Alcantara John Mhel B.

    BSBA4 - MM - BLK 1

    Gross Margin to Set up Mark-up Price

    OIS POT FRIES PLAIN 21G ( Ongville Supermarket OIS POT FRIES CHEESE 21G ( Ongville Supermarket
    Sariaya Sariaya

    P = C/[1 - ( % GM / 100 ) P = C/[1 - ( % GM / 100 )

    P = 6.30 / [ 1 - ( 60 /100 ) P = 6.30 / [ 1 - ( 60 /100 )

    P = 6.30 / ( 1 - 0.6 ) P = 6.30 / ( 1 - 0.6 )

    P = 6.30 / 0.4 P = 6.30 / 0.4

    P = 15.75 P = 15.75

    Formula For Gross Margin

    OIS POT FRIES PLAIN 21G ( Ongville Supermarket OIS POT FRIES CHEESE 21G ( Ongville Supermarket
    Sariaya Sariaya

    M = GM M = GM

    M = % GM x [ 100 / ( 100 - % GM) ] M = % GM x [ 100 / ( 100 - % GM) ]

    M = 6.30 x [ 100 / ( 100 - 6.30 ) ] M = 6.30 x [ 100 / ( 100 - 6.30 ) ]

    M = 6.30 x ( 100 / 93.7 ) M = 6.30 x ( 100 / 93.7 )

    M = 6.30 x 1.07 M = 6.30 x 1.07

    M = 6. 741 M = 6. 741

    Keystone Pricing

    OIS POT FRIES PLAIN 21G ( Ongville Supermarket OIS POT FRIES CHEESE 21G ( Ongville Supermarket
    Sariaya Sariaya

    Retailer Php 6.30 ( 60% ) Retailer Php 6.30 ( 60% )

    Php 3.78 Php 3.78

    Php 10.08 Php 10.08

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