MOD 2-SLP-Cost Volume Profit Analysis

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Business Finance

Trident University International

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Complete question in the attached document...

Second part of the presentation. See background information for the Module 1 SLP.

Required:

Include the following items in your presentation:

  • What about special pricing for some markets or customers?
  • Determination of customer profitability.
  • Show effect on revenues and profitability based on stated assumptions.
  • Potential advantages and disadvantages, both financial and non-financial.

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Module 2 - SLP COST–VOLUME–PROFIT ANALYSIS Second part of the presentation. See background information for the Module 1 SLP. Required: Include the following items in your presentation: • What about special pricing for some markets or customers? • Determination of customer profitability. • Show effect on revenues and profitability based on stated assumptions. • Potential advantages and disadvantages, both financial and nonfinancial. SLP Assignment Expectations Submit a PowerPoint presentation or a Word Document. A PowerPoint presentation should have no more than six slides and a Word document cannot exceed two pages. Use words, tables, and graphs to make a succinct presentation. Document all sources and provide links at the end. It is acceptable to add another slide or page to list the sources. Combine the submissions from prior module(s) into one file before uploading to the SLP 2 Dropbox. Privacy Policy | Contact
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Explanation & Answer

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Running head: MOD 2-SLP-COST VOLUME PROFIT ANALYSIS

MOD 2-SLP-Cost Volume Profit Analysis
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MOD 2-SLP-COST VOLUME PROFIT ANALYSIS

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Special pricing strategies of organizations may be diverse in various markets or may be
based on the aspect of the customers. For, example in circumstances such as new entrants
in the market or increased competition, the prevailing organizations review their pricing
strategies. They do this, so that they can prevent the entry of new organizations in the market
thus minimising competition. In addition, the organizations may decide to lower their prices
so that they can be in a position to raise their market share and to inaugurate themselves in
the new market thus ensuring that their products are widely known.

Some of these pricing strategies entail; penetration pricing which entails setting up low
prices for products to ensure that they get market share quickly. Moreover, another pricing
strategy is premium pricing which entails setting up high prices for products in markets
where strong competitive advantage exists. Nevertheless, another pricing strategy is
skimming pricing which entails setting up high prices for a product until a point where all
the competitors decide to lower their prices. Finally, there is also economy pricing which
entails setting of prices of a product by targeting on hig...


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