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12.07.2014


To get a better understanding of what your dress will cost, it helps to understand how a dress is priced. Clearly, the type and amount of fabric you choose for your wedding dress directly influences the cost of your dress.
Beyond the dress, the total average cost for a wedding tops $26,000, and that’s before you add in the cost for a honeymoon. I work in the bridal business and wanted to make a few points, I don’t want to offend but I feel your video is one -sided and over simplified. I would not have my gowns made in China as I fear that workers are exploited, so I pay to have them l made locally at a cost of aprox $450 to $550 per dress, sometimes more, that is only for the labour -then hand finished by myself -which can take six or seven hours.
I notice your lovely dress has a zip and buttons on top, I would for example not do that as it is a short – cut. Many times a visit or even several visits by one bride does not result in a sale, so shops have to take that in to account, Shops may average one sale in eight or nine or even ten appointments, and then the sale may require further visits it is rare for one visit to create a sale. A fixed cost is one which is totally independent of the level of output, and it would be incurred even when output was zero.
When fixed costs are added to variable costs, then the total costs (TC) of the business can be calculated. Average fixed costs (AFC) are calculated by dividing total fixed costs by the level of output. It is clear to see that average fixed costs decline continuously - this is because the total fixed costs remain constant and they are, therefore, spread over a larger and larger amount of output. Average variable costs (AVC) are calculated by dividing total variable costs by the level of output.
However, the business is likely to reach a level of output where average costs (the cost per unit) will start to rise again. When average fixed costs are added to average variable costs, then the average total costs (AC) of the business can be calculated. It is called 'contribution' because it represents the amount of money which is available to contribute towards covering the fixed costs of the business and, once these are covered, it represents the amount of money which will contribute towards the profit of the business. If a product is loss-making, but it nevertheless makes a contribution towards covering the fixed costs of a business, then it would be unwise to delete the product from the product portfolio.
This is a graph showing the total revenue and the total costs of a business at various levels of output.
What is the break-even level of output and what profit will the business make if it sells all of its output? Total revenue (TR) is calculated by multiplying the selling price by the number of units sold.
The total cost (TC) is calculated by adding together the total fixed costs (TFC) to the total variable costs (TVC). We can now draw a break-even chart and check the figures on the chart with the answers above. As you can see, the answers on the chart correlate with the answers calculated using the two formulae above. The profit at 500,000 units is then calculated by taking a red vertical line up from the 500,000 unit mark to where it hits the TC line. The vertical red- line from the 500,000 unit mark is then extended to where it hits the TR line. It assumes that the selling price is constant, in reality the selling price is likely to vary from customer to customer and region to region. The data used to construct the break-even chart may well be out-of-date and therefore inaccurate. A cost centre is an area of a business where costs stem from and can easily be recorded (i.e. To see if the departments and people are generating enough benefits for the business with the money that they spend. A profit centre is an area of a business where revenue can be identified as being earned, (and, hopefully, profit will be made).
Profit centres generally include different product lines and retail outlets, and they are frequently used by businesses which are large and diversified.


Each profit centre can be viewed as operating independently and this can lead to higher levels of motivation amongst the staff in each profit centre. Overall, the use of cost centres and profit centres allows a business to exercise a degree of financial control over its operations, and to monitor the efficiency and profitability of its various departments and product-lines. Average cost pricing is generally used in case of natural monopoly15, where the average cost of production steadily falls over the entire range of the market demand. When the marginal cost of the monopolist is equated with the market price under the marginal cost pricing at point E1 in Fig. Under average pricing, instead of marginal cost, the price of the product of a monopolist is equated to his average cost of production. The unregulated monopoly price and output are OP and OQ respectively, corresponding to the monopolist equilibrium point 'E\ where the MC curve intersects MR curve from below. Transtutors has a team of highly skilled and certified tutors of business economics who can clear your doubt regarding average cost pricing. An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis.
The cost of a wedding dress depends a lot on your location, size, materials used and design. These machine-made gowns are less expensive to purchase, but there are still labor costs for the employees running the machines.
Most brides have to take their wedding gown for alterations to ensure that the length and fit is ideal.
Saving money on your wedding gown is important, especially if you have a limited amount of money for your wedding ceremony, reception, and honeymoon. With a high percentage of marriages ending in divorce, many dresses end up in used clothing stores.
In my experience bridal gowns are rarely mass produced, far fewer are sold than other types of clothing ie jeans etc, so they are not made in large numbers, also often they are not made abroad so labour is dearer. I then have an appointment with the bride to try it and resolve and fitting issues so that can add up to another days work. You also have to ask yourself how much you earn per day and then think about the shop staff do they work for nothing ?
On going pattern development and sample making, someone made the pattern and possibly several fabrics were tested and several proto-type dresses were made for each design, pattern cutters and sample makers again do not work for nothing.
Polyester is a good fabric, it is cheaper than silk of course but never creases which is important, and hangs very well.
Many workers are involved in the bridal trade and all have to make a profit – to keep going, the alternative is to buy online which involves no service do you really want to boil the experience down to it’s barest minimum like buying a loaf of bread?
Manitowoc Foodservice continuously monitors and invests in advanced supply chain, materials, engineering and manufacturing management to deliver higher performance to our customers through innovation and technology in our various brands. This is because the business becomes more efficient at producing its output, and it can produce each unit for less - hence AVC will decline.
When this occurs in the long-run, then the business is said to have achieved economies of scale. Contribution is the term given to the amount of money that remains after all direct and variable costs have been deducted from the sales revenue of the business. This is because the total profit of the business will actually decrease if the contribution from the loss-making product is no longer received. It is a form of Management Accounting and it enables a manager to see the expected profit or loss that a product will face at different levels of output. The break-even point (shown as a red dot) is the point where the TC and the TR lines cross. This is then measured across to the y-axis (again using a red line) to give us total costs of £ 3 million. In reality, very few businesses will be able to do this and some will remain as unsold stock. They allow a business to see which parts of the business and which products generate the most revenue. Thus, even regulation of monopoly through average cost pricing leads to expansion in output by the monopolist to OQ2 level (which is lower than the expanded output OQ1, when marginal cost pricing is followed).


In other words, the consumer's exploitation or economic inefficiency suffered in case of unregulated monopoly price and output will be reduced under average cost pricing. You can submit your school, college or university level business economics homework or assignment to us and we will make sure that you get the answers you need which are timely and also cost effective Also you can directly interact with our business economics tutors for a one to one average cost pricing session and get answers to all your price regulation under monopoly problems. Discuss India’s the key objectives and strategies of India’s Foreign Trade Policy 2009-2014? Fabric, craftsmanship and alterations are three key factors to consider as well. According to surveys completed by the Wedding Channel, the average price of a dress in 2012 was between $1,200 and $1,300.
Adding a bustle ranges from $25 to $100, depending on the number of layers on your dress’s skirt. To get this room, they put up their samples for sale at huge discounts of up to 90 percent off.
If you’re not attached to your dress, sell it after your wedding for about half of what you originally paid. One dress sale can involve five or six visits and accommodating quite a few family and friends making them tea etc, which all takes time and energy. Examples include raw materials, production wages, other direct production costs, and utility bills.
However, the business is likely to reach a level of output where it becomes less efficient at producing its output and its average variable costs (the variable cost per unit) will start to rise again.
Therefore it is vital that a loss-making product is not deleted simply because it fails to produce a profit - if it produces a contribution towards fixed costs, then it is still worthwhile to produce it. This is then measured by dropping a vertical red line down to the x-axis, to give 200,000 units. It eliminates the excess profits that a monopolist can earn at the expense of the consumers in the absence of any regulation or control.
If you have a Goodwill store in your area, it’s not uncommon to find wedding dresses for less than $100. As most dress samples are in size six or eight, sample sales only work if you’re the ideal industry size.
Another bride is thrilled to get the discounted dress, and you can quickly regain half of your money.
Instead of paying thousands for a dress, you pay can rent a current style for as little as $100. For example I have observed that top Designers (for example Alexander McQueen ) sometimes use polyester in their evening gowns and line them with silk. Thus, the marginal cost (MC) curve will lie below the AC curve at all relevant levels of output under the prevalent demand conditions (represented by AR and MR curves in the figure) in the market. Thus, the imposition of marginal cost pricing under natural monopoly results into losses being incurred by the concerned monopolist. In addition, lowered price OP under average cost pricing in comparison to the unregulated monopoly price of OP will go a long way in raising the welfare of the consumers. There are pre-owned wedding dress websites which you can save up to 90 percent off retail prices.
The loss making monopolist in such a situation should be compensated by the Government through the grant of subsidy to induce him to stay in business and to ensure an efficient allocation of resources in the economy. Dress designers who mass produce wedding dresses do get hefty discounts for buying the fabrics in bulk, so that does save them money. Here, he earns only normal profits, since price OP2 is exactly equal to the corresponding level of average cost E2Q2. On account of tremendous financial burden on the public exchequer, the Government can adopt an alternative regulation policy of average pricing. In other words, the amount of excess profits accruing to the monopolist under average cost pricing is zero.



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