Session 8 Case Study

Session 8 Case Study

Case:  The Business Side of Exhibition Catalogs

Read the Case Study located on page 331 of the text and answer the following:

1.     If Karen’s fixed expenses are $120,000 for the catalog, $18,000 for insurance, and $27,000 for personal expenses, how much must she charge the museums for the catalog to break-even?


2.     If Karen wanted to make a total of $100,000—which includes the $62,000 that she was able to negotiate with the museum—how much would she have to charge the museum for the catalogs?


3.     What are some of the shortcomings of the method you used to calculate the prices of the catalogs in questions 1 and 2?


4.     From Section 11-4, discuss each of the major methods of pricing as it would relate to Karen’s pricing of the catalog. Which method should she use? Why?