Your health care business is beginning to take shape. You’ve chosen products or services to offer, come up with a business model, and looked at your fixed and variable costs. Now you have to decide how to set your prices. For this assignment, determine your prices and when you will make a profit. Be sure to answer the following questions for the health care business that you are creating in this class:
1. In your own words, discuss both the full-cost pricing strategy and the marginal-cost pricing strategy and explain how each would apply to your health care business. How would target costing affect your business? 2. Based on your analysis, which pricing method would be the best for you to use in your health care business and why? 3. Return to the break-even analysis tool that you used for the Break-Even Analysis Assignment. Increase the sales or service units by 25% from the number that you indicated in the Break-Even Analysis Assignment. Write a summary of how this affected your health care business. What departments did you have to make changes in? What did this do to your fixed or variable costs? Be specific. Upload your revised PDF break-even analysis tool to show that you have increased the sales or services units by 25%.
Type your name in the upper-right corner of this page next to Last Name
Save your files as a Word document (.docx) and Portable Document Format (.pdf).
Include the terms Pricing and Updated and your Last Name when saving your file. Example:Pricing_Smith.docx and Updated_Smith.pdf.
Upload your completed Word document as well as your revised Excel file using the Browse b