Price and cost analysis

Scenario from Assignment 1- ( will provide )

Imagine that you just created a new start-up company. You want to compete in the growing industry of drone navigation systems. VectorCal is the only major company in the field. You also want to be a leaner, faster version of a company that you view as being too slow and costly. Note: You may create and / or make all necessary assumptions needed for the completion of this assignment.

Write a two to three (2-3) page paper in which you answer the following questions:
Analyze your company’s cost classification for pricing of the navigation system. Defend your cost classification to the U.S. government.
Determine reasonable, allowable, allocable, variable, fixed, and semi-variable costs for your company after the initial start-up phase is complete.
Predict the method for performing price analysis that the U.S. government will want from your new company and VectorCal. Justify the response.

Sample Solution