The document outlines costs and pricing strategy for a product or service. It explains that the price charged to customers must be higher than the costs to produce and deliver the product or service. As an example, it provides details on the costs to produce and package styrofoam insulation including materials, labeling, packaging and shipping. It calculates the total cost per unit and proposes setting the sales price high enough to achieve a 50% profit margin.

1. COSTS AND
PRICING STRATEGY
( You need to work out how much it costs
to make a deliver one product, or one day
(or hour) of your service. The price you
charge to your customers for your product
(or service) must be higher than what its
costs to create.)
18.12.2013

2. COSTS AND PRICING STRATEGY
NAME:
STUDENT NUMBER:
DEPARTMENT:
BUSINESS NAME:
DATE:
ALİ KAYA
125044
CIVIL ENGINEERING
SINPAS GYO
18.12.2013
PRODUCT/SERVICE NAME
ASMOLEN STYROFOAM
A NO OF UNITS IN CALCULATION
B PRODUCT SERVICE COMPONENTS
1
PACKAGING
2
LABELS
3
PACK
4
CARGO
5
6
7
C
TOTAL PRODUCT/SERVICE COST
D
COST PER UNIT
E
PROFIT MARGIN $ £ TL
F
PRICE PER UNIT
G
PROFIT MARGIN %
H
MARK UP %
640 square meters, 8apartment for
work styrofoam 1600units; 1units
styrofoam obtain 2.00TL.
1600x2TL=3200TL
time in 1000 for the publication of the
proclamation of the internet; 4.000TL
for 2000units business card ; 20TL
for 4000units flyers ( two-way ) ; 80TL
for 640 square meters fiber mesh ;
384TL
Total price ; 7.684TL= 3.932$ (except
K.D.V.)
for 1 package strofoam (about 20
units)
0.25$
Free
0.25$
Free
1 package strofoam's cost (20 units)
20$
for 1 package strofoam (about 20
units)
10$
for 1 package strofoam (about 20
units)
10$
1unit strofoam
1TL=0.5$
for 1package strofoam
%50 profit
0.5 $ / 10 $ X 100 = 2.5 $ = 5 TL
company owner: ALİ KAYA