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?