Explore BrainMass
Share

Alice Bates

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Alice Bates needs to reduce prices to her companies operating system software since its getting strong competition from a number of competitors. If she institutes a 30% discount she can probably increase next year's sales 25%. But if she reduces the price 60%, she can get it installed on notebook computers which is expected to increase sales 50%. However, her CEO noted that the sales of their software suite would grow at the same rate as the operating system sales and sales quantities approximately equal to sales of the operating system software. No price changes are being considered for the Software suite.

Assuming that the present sales quantities of the operating system software are 2 million units and they currently sell for $300.00 The software suite sells for $350.00. Sales, general and administrative costs average $50 per unit for each and are not expected to change.

How does one compare the no change and two alternative price changes.

© BrainMass Inc. brainmass.com October 25, 2018, 12:52 am ad1c9bdddf
https://brainmass.com/economics/finance/alice-bates-capital-budgeting-244170

Solution Preview

See the attached file.

Alice Bates needs to reduce prices to her companies operating system software since its getting strong competition from a number of competitors. If she institutes a 30% discount she can probably increase next year's sales 25%. But if she reduces the price 60%, she can get it installed ...

Solution Summary

This solution is comprised of a detailed explanation to answer how does one compare the no change and two alternative price changes.

$2.19
See Also This Related BrainMass Solution

Research proposal project.

Hi experienced helpers :),
I need help with writing the Research Proposal Project on a topic about the children of divorce. It could be memory, attention, cognition, behavior, comparing specific CBT intervention, etc, anything related to counselling. Three parts: topic, outline, and final draft should be clearly presented (10 pages APA). The final goal is not to complete an entire research study, but to construct a brief, yet solid and well researched PROPOSAL for a study describing all the various parts, including the references you will use to establish the background for the study - all of which are always the first stages in an actual study.
I am willing to consider price adjustment with your proposal ideas. I had one good and one poor experience with this cite.
I really need professional help.
Thank you very much!

View Full Posting Details