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Pricing Striates two 1. Contribution is calculated based on cost and prices. Often, we treat these variables as fixed. What are the implications of handling unsure factors as fixed? Some of the consequences of uncertain variables could be payroll. You would have to get some baseline of just how much you'd be paying out each week. Someone could possibly be out sick and you do not replace the hours or you replace the hours with a different worker which has a wage Running an advertisement in the paper you've shifted to size which you want to put in the paper which would alter the price either way it may be more or it may be less. When you have delivery support than there might the price of gas changes from week to week. You may need to budget a bit high if you are to come out also. 2. Which are examples of contradictory motivations that might lead well- meaning supervisors to undercut a stated pricing plan? A few of the conflicts could be private when someone comes into the shop that the manager understands and gives them a great price break which may turn into more than once and continue. There also could be a computation between shop manages that work for the exact same business. One could cut the price so that the customers come to his store and adds volume into his shop but in the market hurting the store the profit margin. If a store manager has an ego problem of always needing to be the best and showing everybody up are the very best. He can do anything is needed to make himself feel much better but he might not even understand it or believe it. Pricing Striates 3.