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Part 1: Select a single product for your firm and set a price according to multiple pricing approaches.For instance:(Note:You are not asked to describe how the firm sets a price.)

1. Cost-based: Use best estimates for materials and labor costs. Use a reasonable percentage of price as an estimate for all overhead expenses –usually from 10% to 50%. Note: the quality of your estimates is not the focus of this question.

2. Economic Value To Customer:Describe how you determine this price level; then do so.

3. Competition-based: Briefly supply the appropriate data and explain how your price relates (at-, above-, or below-the-market).

4. Which of the above or other methods do you believe most closely reflects your firm’s pricing method? Why?

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