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BUS 315

Assignment 2: Price Analysis for the Navigation System

Needed Friday, February 7, 2020

In order to complete this assignment, refer to the scenario from Assignment 1, as well as to the scenarios and readings from previous weeks.

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:

Question #1

Analyze your company’s cost classification for pricing of the navigation system. Defend your cost classification to the U.S. government.

Question #2

Determine reasonable, allowable, allocable, variable, fixed, and semi-variable costs for your company after the initial start-up phase is complete.

Question # 3

Predict the method for performing price analysis that the U.S. government will want from your new company and VectorCal. Justify the response.

Your assignment must follow these formatting requirements:

1. APA format.

2. Each question should appear as a header in the paper.

3. Include an introduction based on the provided scenario

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