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Tronn With PESA (1 Server) Tronn With PESA (2 Servers) Value-In-Use Pricing Calculations

The document discusses the costs associated with different server options from Tronn and Zink, including the price of servers, electricity costs, software costs, and labor costs. It then evaluates four pricing options for an Atlantic bundle that includes a Tronn server and PESA: 1) maintaining the status quo price, 2) setting the price equal to 4 Zink servers, 3) using cost-plus pricing, and 4) using value-in-use pricing based on 1 or 2 Tronn servers. It analyzes the total costs, revenues, profits, and potential additional sales under each option.

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Ishan Jha
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57 views4 pages

Tronn With PESA (1 Server) Tronn With PESA (2 Servers) Value-In-Use Pricing Calculations

The document discusses the costs associated with different server options from Tronn and Zink, including the price of servers, electricity costs, software costs, and labor costs. It then evaluates four pricing options for an Atlantic bundle that includes a Tronn server and PESA: 1) maintaining the status quo price, 2) setting the price equal to 4 Zink servers, 3) using cost-plus pricing, and 4) using value-in-use pricing based on 1 or 2 Tronn servers. It analyzes the total costs, revenues, profits, and potential additional sales under each option.

Uploaded by

Ishan Jha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Cost of Server

Price of server
Electricity Cost
Cost of App S/W
Labour Cost
Total Cost of Ownership
Annual Savings
50% of savings

Value-in-use Pricing calculations


Tronn with PESA (1 Server)
Tronn with PESA (2 Servers)
1538
3076
2000
4000
250
500
750
1500
80000
80000
3000
6000
7800
4800
3900
2400

Total Price per server as per Value-in-use

5900

Total Market Demand

92000

Year
Total Demand
Market Share (Target) Atlantic
Target volume of Tronn servers sold
No. of Tronn servers sold with PESA
Development cost PESA
Floor Price for PESA
Electricity Cost for Zink
App S/W cost for Zink
Expenses for Zink server (1 unit)
Expenses for Zink server (4 units)

2001
50000
0.04
2000
1000
2000000
2000
250
750
1000
4000

Ceil price for PESA (1 server)

3200

2002
70000
0.09
6300
3150
2000000
634.92

Zink (1 Server)
1214
1700
250
750
80000
2700

2003
92000
0.14
12880
6440
2000000
310.56
Electricity Cost for Tronn
App S/W cost for Tronn
Expenses for Tronn server (1 unit)

Zink (4 Servers)
4856
6800
1000
3000
80000
10800

21180
10590
188.86
250
750
1000

Total Sales of Atlantic Bundle


Cost of PESA per unit sold

Option 2 - Price
equal to 4 Zink
Servers

Option 1 - Status
Quo

Cost of Tron Server


Cost of PESA/bundle
Price of Atlantic Bundle
Total Tron sold without PESA
Total Tron sold with PESA
Cost of Production
R & D development costs
Total Costs
Total Revenues
Total Profit
Money Left at the Table

1538
188.86
2000
10590
10590
32574840
2000000
$
34,574,840
$
42,360,000
$
7,785,160

$
$
$
$

1538
188.86
6800
10590
10590
32574840
2000000
34,574,840
93,192,000
58,617,160
50,832,000

Option 3 - Cost
plus pricing

$
$
$
$

1538
188.86
2244.91
10590
10590
32574840
2000000
34,574,840
44,953,646
10,378,806
2,593,646

Option 4 - Value in-use pricing


1 Tron server

$
$
$
$

1538
188.86
5900
10590
10590
32574840
2000000
34,574,840
83,661,000
49,086,160
41,301,000

Option 4 - Value in-use pricing


2 Tron Servers

$
$
$
$

1538
188.86
3200
10590
10590
32574840
2000000
34,574,840
55,068,000
20,493,160
12,708,000

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