Atlantic computer has spent 5000000 developing a new


Atlantic Computer has spent $5,000,000 developing a new software application. It plans to offer its sales team a commission of 30% of the final price to sell the software and also make a 30% profit. The sales team works just on commission. Atlantic believes that it can sell 12,500 units. a. How will you price the software using a cost-plus approach? b. It was assessed, and can be demonstrated, that the software creates customer-value to the tune of $10,000. With that information, how will you price the product? Why?

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Operation Management: Atlantic computer has spent 5000000 developing a new
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