Pricing Problem

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Uploaded: 13.08.2013
Content: 30813234542913.rar (23,64 kB)

Description

The cost price of a liter of milk at the dairy is 15 rub.25 cop. the production of 150 tons of milk per month, fixed costs are under 45%. The market price for one liter of milk has developed at a rate of 17 rubles. 30 kopecks. per liter in the local market and 15 rubles. 75 kopecks. in the neighboring market. Transportation costs in the sale of the neighboring market are 5% of the price of a liter of milk. The company sells its products in the local market. Can a company get more profit (rate of return over), if released to the neighboring market, maintaining sales at the local? The production capacity of 2,500 tons per year, an industry rate of return of 20%. Capacity neighboring market of 100 tonnes per month.

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