Please use these pricing method to determine the price of th…
Please use these pricing method to determine the price of this new product, competition based pricing, cost-plus pricing, and value in use pricing. Please make sure that you write each step (process) for how you get the final price based on each pricing method. The cost of making this new product is $4500. They usually make 20% profit margin. The price of the best alternative is $5,000. The operating cost of the best alternative is $20/per hour while the operating cost of the new product is $25/ per hour. The probability of system crash is 10% for the best alternative while it is 1% for the new product. Assume the cost of a system crash is $300,000 and the product can be used for 5,000 hours.