1. COSTS AND PRICING STRATEGY
<NO OF UNITS IN CALCULATION
PRODUCT SERVICE COMPONENTS
Specification cost
1500$
Software design cost
3500$
Development cost
1400$
Extra requirement software
800$
Other expenses
1200$
TOTAL PRODUCT / SERVICE COST
7500$
COST PER UNIT
7500$
PROFIT MARGINE
4000$
PRICE PER UNIT
12800$
PROFIT MARGINE
45.75%
MARK UP
67.84%