Free Case Study About The Highest Cumulative Revenue Totaled $535,743 At The MSRP Of $9.99

2. The significant gaps, generally, relate to having clearly defined person elle rolls, as it realates to pricing, a lack of logic-based pricing systems and clearly defined pricing rules, and a lack of communication between departments, as it relates to pricing. However there is a huge opportunity to move the business in a new and profitable direction through data based pricing, coordination of online and in store selling campaigns, and increased organization and communication as it relates to both pricing and sales.
3. Short term, Jim must consider the lack of transparency between departments, that leads to a misunderstanding of pricing, and the lack of clear MSRP pricing and structured discounts for sales partners as the primary concerns short term.
Long term. Jim should serious consider increasing research, split testing, and information analysis in order to improve sales and pricing protocols and maximize pricing.
4. The backlog around Angie Whitaker’s email needs eliminated by delegating that task to someone else, Doug is preferable. Also, it seems that MSRP pricing should be guided by recommendations from Angie Whitaker, the CEO/MBA at set by the production team.
(Part II) Required:
1.
$9.99 generates the highest revenue
$19.99 generates the highest margin
$24.99 yielded the highest web store margin percentage.
2.
The highest revenue is generated at an MSRP price of $9.99, generating $478,800 in revenue.
The MSRP that drives the highest retail chain margin in dollars is $24.88 when generates a margin of $76,776. This also generates the highest margin %, at 43.5%.
3.

The highest margin in dollars and the highest margin % were both generated by the MSRP $24.99, with a total margin of $97,619, which equals a 50% margin.
4. The total annual revenue difference, margin, and margin % are very narrow. The total revenue from the optimized MSRP of $24.99 is 10,264,332, while the total revenue generated by the original offering price of $19.99 is $14,663,220. The margin for the optimized price is $5,076,188, and the margin for the original price is $4,949,880. This generates a margin % of 50% for the optimized price, and of 33.8% for the original price.
 

Works Cited:

Miller, Scott. “Is the Price Right?.” CMA Professional Programs Online Library (May 2007). Web.
 “Pricing Power: Using price strategy road maps and tools to maximize bottom-line results,” CMA Professional Programs Online Library (May 2008). Web.
“Module 6, Assignment 4 – Topic: Pricing Strategies” Certified Management Accountants. (August 2014):1-6 Print
“Module 6, Assignment 4 – Price Case Study- Playlandz Toy Manufacturing” Certified Management Accountants. (December 2013):1-8 Print