Calculate Cost Structure and Environment Factors
In general, the price of the Automop will also depend on cost structure. Costs such as inventory costs, supply costs, and operating expenses will influence the product pricing. The price structure must account for fixed as well as variable costs of conducting a business, including marketing costs, discounts and shipping. Fixed costs generally refer to costs such as operating expenses, while variable costs include the costs of raw material and goods. In some cases, Automop will have to price the product according to local and national regulations and laws. Some other limiting factors include tariffs, political conditions as well as shipping costs. The estimated cost structure for Automop per unit, including fixed and variable costs, is ₤40.00. Since the official currency of England is the Pound Sterling (₤), Automop will price its products in the same currency. The following table is used to determine the overall cost of each Automop unit. 

Automop Costs and Expenses Per Unit
Raw Materials 	₤25.00
Labour Expense	₤5
Advertising Expense	₤0.75
Rent Expense	₤2
Shipping Expense	₤2
Utilities Expense	₤0.25
Miscellaneous Expense	₤5
Total Costs	₤40.00