Silk production is one of Vietnams most famous industries and silk production in Vietnam can be traced back to 2000 BC.

[answerhappygod]

Silk production is one of Vietnams most famous industries and
silk production in Vietnam can be traced back to 2000 BC. Vietnam
silk is produced in vibrant colours and exotic designs and, with
increased tourist travel to the area, is an increasingly popular
fabric in global fashion markets. Anh Nguyan has started a business
importing Vietnamese silk scarves to the UK and has spotted an
opportunity to launch her brand in high street accessories stores,
department stores and through her own website. Anh Nguyan intends
to sell the Vietnamese silk scarves to consumers at the retail
price of £25 although some believe this is quite expensive for a
Vietnamese silk scarf, which retails in Vietnam at a low price. Ann
Nguyan argues that the scarves she is importing are not readily
available in the UK market, are of the highest quality and are
unusual, even in Vietnam, in their use of highly coloured
traditional designs. Consumer perceptions so far seem to be that
the product is unique and of high value. Required:
Anh Nguyan proposes to set the retail price at £25 each for the
silk scarves. Discuss the steps she should take to reach her final
pricing decision.
Imagine the company has fixed costs of £4.6 million, and that
each silk scarf has a variable cost of £10 and a retail price of
£25. How many Vietnamese Silks scarves does Anh have to sell to
realise a target return of £500,000?