Additional examples, Business applications, Setting a sales price – HP 10B User Manual
Page 98: Forecasting based on history
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8
Additional Examples
Business Applications
Setting a Sales Price
One method for setting the per unit sales price is to determine the cost of
production per unit, and then multiply by the desired rale of return. For
this method to be accurate, you must identify all costs associated with the
product.
The following equation calculates unit price based on total cost and rate
of return:
PRICE = TOTAL COST -r NUMBER OF UNITS x (1 +
(%RTN
-r 100))
Example.
To produce 2,000 units, your co.st is $40,000. You want a 20%
rale of return. What price should you charge per unit?
Keys:
Display:
Description:
40000 0
40,000.00
Enters cost.
2000
0
20.00
Calculates unit cost.
WD
1
[±]I(D
20
0
Calculates unit sales
100
0
24.00
price.
Forecasting Based on History
One method of forecasting sales, manufacturing rates, or expenses is
reviewing historical trends. Once you have historical data, the data arc fit
to a curve that has lime on the j:-axis and quantity on they-axis.
8: Additional Examples 95