External and Internal Pricing Factors

E 2. Mobile Battery features more than a dozen brands of batteries in many sizes. Two of the brands are Power Plus and Super Power. The following information about the two brands was obtained:

Power Plus

Super Power

Selling price:

Battery, installed

$120

$110

Cost per battery

100

70

As shown, selling prices include installation costs. Each battery costs $10 to install.

1. Compute each brand’s net unit selling price after installation.

2. Was cost the main consideration in setting those prices?

3. What other factors could have influenced those prices?