92029 · Price determination

• This page names the determined price. It does not run the model

  92029 assesses understanding of price determination for an organisation. The official Achieved climb, in EN1, is two jobs: describe how a price has been determined using financial or non-financial information; use a concept or model to support that description. Merit then asks how one internal or external factor would change costs, sales and profit, and asks for two priced options, each with a reworked model. Excellence asks you to justify one post-factor price from the model, and to discuss consequences of **that price** for the organisation and two stakeholders. This page has a narrower job. If the starting object is thin — no priced item, no dollar price, no financial information that could show cost coverage — later pages have nothing honest to work on. The National Moderator’s Report has already refused a survey with no cost proof, a competitor ticket standing alone, a break-even figure used as the only proof of how the price was set, and a pricing slogan with no second model. This page only teaches the first two beats — organisation, item, determined price, and the kind of information Achieved will require — It will not draw a supply-and-demand schedule. It will not change the $18 when fish goes up. Your school assesses the internal.

• The official object is a price that has been determined

  The achievement standard writes **price determination for an organisation**. Explanatory Note 1 writes **how a price has been determined**. Hold that wording. The starting object is not “pricing” as a vibe. It is not “we should be affordable.” It is not “the market.” It is one item, one organisation, one price written as a dollar amount, and a description of **how that number was arrived at**. A price in this course is the dollar amount charged for one unit of a product or service. Harbour & Holt’s unit is one smoked-kahawai pack. Southwind’s unit on this page is one mince pie. Salt Line’s unit is one crayfish roll. Kōwhai’s unit, if you used the club for this internal, would be one term fee — Topic 2 already used a $15 refund as evidence that a fee exists. A koha is not a price. A donation is not a price. An oven quote is a price **for a machine the bakery might buy**; it is not the 92029 price of the pie. Determined is the official verb you have to earn. “We charge $18” announces the sticker. “The pack is $18; variable cost is $10, so $8 remains toward the $7,600 monthly fixed costs and toward profit; last month 1,100 packs left $1,200 on this line” is beginning to describe how that $18 sits against cost and profit. The second sentence is still not a finished Achieved answer — a later page has to attach a named model — but it is already a 92029 starting object. The first sentence is not. You do not get a higher grade for calling the same $18 a “strategy.” You fail the standard if you never name a dollar price, or if you name one and then support it only with a slogan.

• The organisation must set a price, for a named item

  Explanatory Note 3 is the extra organisation test Topic 1 already previewed. For 92029 the organisation must be one that **sets a price** for a product or service. The test is the item, not the logo. Harbour & Holt sets $18 for a smoked-kahawai pack. That organisation, for that item, can carry 92029. Southwind sets $6.50 for a mince pie. Same test, passed. Salt Line writes $16 on the board for a crayfish roll. The organisation test is passed; the information test, on Topic 1’s figures, is not yet — Topic 1 gave you a weekly schedule and no cost per roll. Second Sitting gives food away. On those facts it is the **wrong** 92029 organisation, unless it also prices a pantry line, in which case the pantry tin is the item and the give-away crate is not. Friends of Hagley Park, already taught, only collects koha. Wrong organisation for this internal. Riverside’s sport-van paper was a weak 92028 need; it is not a 92029 price at all, unless the school also runs a priced canteen line or a priced ticket and you assess **that** item. Conditions of Assessment require the assessor to approve the organisation **and the item** at the start. That gate is why this page exists. You cannot walk into 92029 with “my stall will sell something fun” and hope the marker will stretch it. You cannot walk in with Second Sitting’s van and call the $14,900 quote a price determination. You cannot walk in with a group’s mutually agreed market-day sticker and no individual description of how *you* determined it. Your kaiako approves the organisation and the item. Your school assesses the internal. These constructed examples are not a live 92029 submission.

• Name the pūtake first, then the item, then the price

  Pūtake is still the organisation’s reason for being. Topic 1 owns that definition. This page teaches the attachment habit official EN5 makes possible: pūtake, goals and values are listed as non-financial information that can be linked to price. A price that cannot be attached to a reason for being is a sticker looking for a story. The habit on this page is a three-sentence opening: **Pūtake:** Harbour & Holt exists to sell everyday smoked kai to people who live in Nelson and to keep four jobs local. 2. **Item:** the smoked-kahawai pack sold at Saturday market and through the week. 3. **Determined price:** $18 a pack. Those three sentences are not yet Achieved. The first is non-financial. The third is only a number until financial information shows coverage. Write them anyway. A later model that cannot point back to everyday kai and four jobs is doing arithmetic, not Commerce. Be precise about the official gate, because 92028 and 92029 are not the same. On 92028, Explanatory Note 2 makes pūtake compulsory at every grade; the National Moderator’s Report still treats a missing pūtake as a fail. On 92029, pūtake is official non-financial information, not an EN2 compulsory paragraph. The Achieved gate the National Moderator’s Report names for 92029 is **cost coverage per unit and a path to profit**, supported by a concept or model. Name pūtake before the dollars, because a price has to serve a reason for being. Do not tell a marker that a missing pūtake sentence automatically fails 92029 the way it fails 92028. A longer pūtake paragraph does not by itself raise the grade. Pūtake is a te reo Māori term used as load-bearing Commerce vocabulary. Use the official one-line sense. Do not embellish it with invented tikanga so the pie sounds more official.

• Financial information has to be able to show coverage and a path to profit

  Financial information is still information expressed as dollar values. On this page the dollars that matter are the ones that can show two official facts: The determined price **covers costs per unit**. 2. After those costs, the organisation can still make a profit — a path to profit, not a hope. Harbour & Holt’s already-taught figures do that work without a new model lesson. Price $18. Variable cost $10. $8 remains from each pack. Monthly fixed costs $7,600. Last month 1,100 packs. Revenue 1,100 × $18 = $19,800. Variable costs 1,100 × $10 = $11,000. Total costs $11,000 + $7,600 = $18,600. Profit on this line last month $1,200. In other words: $18 covers the $10, and at last month’s volume the line was not merely covering — it left $1,200. That is financial information a later model can use. It is not yet the next unit. Non-financial information is still Commerce information. Official 92029 EN5 examples: pūtake, goals and values; market-research data; price data from other organisations. A parent saying Southwind’s savouries taste better is non-financial. “Customers would pay up to $7” is market-research colour; if the $7 is used as a number it is financial information about willingness to pay, and it is still **not** proof that Southwind’s own pie covers Southwind’s own cost. The National Moderator’s Report is blunt: competitor prices might be too high to attract any customers, or too low to cover costs and profit. **Non-financial information by itself is insufficient for Achieved.** Show coverage first, then let the survey or the supermarket ticket sit beside it. A later page will make you put these same dollars through a named concept or model — a projected income statement, cost-volume-profit, supply and demand described in words, or a pricing strategy **paired** with one of those. This page only has to stop you arriving at that model with nothing but a slogan.

• A concept or model will later support the description. This page does not teach it

  Explanatory Note 2 says a concept or model is used to observe, understand and make predictions. Official examples: supply and demand; a projected income statement; cost/volume/profit analysis; pricing strategies. Conditions of Assessment and the National Moderator’s Report add the rule Topic 1 already printed: **pricing strategies in isolation are not enough**. Break-even alone is insufficient. Cost-plus is named as the strategy that can actually show coverage — and even then it has to show how profit is applied to cost to derive the selling price. None of that is this page’s job. Topic 1 already showed you what those objects look like. The next Topic 3 lesson **uses** them to support a determined price. If you cannot yet write income less expenses equals profit or loss, or fixed costs ÷ (selling price per unit − variable costs per unit), go back to the page on models and information. Then come here and ask whether your determined price has the dollars a model could actually use.

• Do not confuse the determined price with five nearby official objects

  Commerce re-uses ordinary English. The nearby objects are official, and they are not this page’s object. A 92028 need, issue or opportunity is the organisational gap or chance a financial decision addresses. Southwind’s failing oven is that shape. Harbour & Holt’s failed warrant is that shape. Second Sitting’s Tuesday transport is that shape. Those pages already taught you not to start with the van. This page adds the matching warning the other way: do not start a 92029 internal with the oven. Replacing a machine is not determining a pie price. Topic 2’s Southwind bench already had both papers on it. Keep them on separate pages. A 92031 viability factor hits the ability to keep operating financially over time. A competitor cutting Saturday prices at the Nelson market can be that later shape. It is not, by itself, Harbour & Holt’s determined $18. A competitor’s published price is official EN5 information that can be **linked** to price. Southwind’s supermarket savoury at $4.20 is that shape. It is not Southwind’s determined price, and it is not proof of Southwind’s cost coverage. An internal or external factor changes costs, sales and profit and forces a look at whether the determined price should move. Flour-up at Southwind is that later shape. Fish-up at Harbour & Holt is that later shape. This page names the $6.50 and the $18 **before** the factor. The next-but-one unit owns the factor. A perspective is a stakeholder’s viewpoint. A consequence is a flow-on of a decision or, on 92029, of a **price** already chosen. Topic 1 owns those jobs. Excellence consequences attach to the price, not to the factor. This page does not write them.

• Official activity types, named only

  The Ministry’s 2025 92029 activities are legitimate official contexts. This page names them so you recognise the shape. It does not clone them, and it does not pretend they are your internal. - ***Preparing to launch*** — a priced item before it is sold. The determined price still has to show coverage; a launch poster is not Achieved. - ***The price is right*** — the National Moderator’s Report has already seen successful evidence in this family. Where a school provides resource material, the report warns assessors not to specify profit and production targets that leave only one possible price, and not to issue fill-in templates and sentence starters that do the thinking. - ***Strictly business*** — a student enterprise / market day. Typical written envelope in the Ministry pack’s Step 2/3 is 500–600 words; other 92029 evidence may be a 3–4 minute oral or video, ≤8 slides, or a 750–800 word report. The stall may be a group. The determination must be individual. This lesson does not watch a live stall. Official annotated-exemplar families, named only, not rewritten: a market-day lolly-bag price that showed cost, a markup and a rounded cash price (Achieved, because a second priced option was not modelled); a garden-service price held after a wage change, with reworked statements (Merit, not Excellence, because the keep-price justification compared options rather than proving coverage from the reworked statement); a food-truck price moved after a new machine, with supply described and consequences attached to the **price** (Excellence family). Do not paste those figures. Do not treat this paragraph as your assessed work. Prefer, on current official advice, a business, a student enterprise, or another organisation that actually prices an item you can evidence. Do not invent an iwi organisation so the page sounds more official. Do not invent tikanga around a priced koha. Official EN3 still lists whānau, hapū or iwi as example organisations. On current NMR advice a thin whānau-as-organisation submission is rarely successful for 92028; the same thinness will not suddenly become a strong 92029 organisation. This page does not construct one.

• Individual evidence, even when the stall is a group

  The National Moderator’s Report is written for a year in which many 92029 samples used a student start-up on a market day. That context is allowed. The authenticity rule is not optional. Groups may decide the product together. Each student must then independently describe **their** price and how it has been determined. Merit and Excellence must also be independently completed. The group may later sell at a mutually agreed price. That later selling price is a stall fact. It is not automatically one student’s determination. Fill-in templates, sentence starters and activities that specify the profit target and the production target so tightly that only one price can fall out, are the authenticity problems the report has already named. A later studio task can scaffold the sequence. It cannot invent a determination you never made, and it cannot mark the stall.

• What this page is not asking you to become

  This page is not your 92029 submission, not a small-business plan, and not a sit-down exam. It will not teach cost-plus, skimming, penetration or psychological pricing. It will not rework a projected income statement or a break-even calculation as a 92029 model. It will not shift Salt Line’s supply curve. It will not raise Southwind’s pie because flour went up. It will not write two priced options, and it will not write Excellence consequences of a price. It will not let you treat “my family charges board” as a 92029 organisation. It will not invent tikanga so a constructed bakery sounds more official. These constructed figures are not a live internal.

Internal · marked per part.

AS92029 is a school internal. There is no sit-down exam paper. Use Learn and Practise to prepare the price-determination work your kaiako marks.

4 authored Learn units for this standard.

• How a price is set

  On a Saturday in Nelson the board is already written. Harbour & Holt’s smoked-kahawai pack is $18. Topic 1 already left the matching figures on the table: variable cost $10 a pack, monthly fixed costs $7,600 on this line, 1,100 packs sold last month. Someone writes at the top of a 92029 page, “We charge $18 because that is what we charge.” That sentence names a number. It has not yet described how a price has been determined.

• Models for price

  On a Saturday in Nelson the board is still $18. The last page already did the starting-object work. Harbour & Holt exists to sell everyday smoked kai to people who live here and to keep four jobs local. The item is one smoked-kahawai pack. The determined price is $18. Variable cost is $10, so $8 remains; last month 1,100 packs left $1,200 on this line. Someone now writes, under the $18, “we used supply and demand.” Someone else writes “psychological pricing — $17.99 looks cheaper.” A third person writes “we priced it so we break even.” Three model names have landed on a price the last page already recognised. None of those three sentences has yet used a concept or model the way 92029 Achieved will require.

• Internal and external factors

  On Monday the fish invoice lands in Nelson. Harbour & Holt’s smoked-kahawai pack is still $18. The last Topic 3 page already named that sticker, the $10 variable cost, the $7,600 of monthly fixed costs, last month’s 1,100 packs and the $1,200 left on this line. Someone writes across the invoice, “Fish went up, so raise the price.” That sentence names a feeling. It has not yet explained how a change in an internal or external factor would change costs, sales and profit, or how those dollar changes could affect the determined price.

• Pricing options and consequences

  On Monday the fish invoice is already on the Nelson bench. The last three Topic 3 pages already did the work this one is not allowed to skip. Harbour & Holt exists to sell everyday smoked kai to people who live here and to keep four jobs local. The item is one smoked-kahawai pack. The determined price is $18. Variable cost was $10; the fisher has raised the kahawai, so it is now $12. Last month’s 1,100 packs, if they still sell at $18, leave a **$1,000 loss** on this line. Someone writes across the invoice, “find a cheaper fisher.” Someone else writes, “raise the price — customers will understand.” A third person writes, “buy the chiller van, then look at the pack.” Three sentences have chosen. None of them has yet written a 92029 priced option, and none of them has yet written a consequence of a **price**.

36 Practise questions in “Price determination”. Feedback here is formative and is not an official NCEA grade.

• An organisation that sets a price

  One item, one dollar price, and financial information that can show coverage

• A model that can determine a price

  Cost-plus, CVP or a projected statement — not a strategy label on its own

• A factor that moves the price

  An internal or external change with dollar effects on costs, sales and profit

• Priced options and consequences

  Keep or change the dollar price, each with a reworked model, then impacts of that price

• The price has to be in dollars

  A determined price and each priced option are dollar amounts — not a koha, a slogan or “raise it a bit”

Sample questions

1. What extra test does 92029 add to the ordinary Commerce organisation?
2. Which sentence names a 92029 starting object?
3. Match each constructed organisation to whether it can carry 92029, and on which item.
4. In a sentence or two, explain why the comment card and the $4.20 cannot, by themselves, determine Southwind’s price.
5. Someone writes, “We charge $18 because that is what we charge.” What has that sentence failed to do?
6. Which sentence actually begins to show that $18 covers cost per unit and can make a profit?
7. A classmate says, “Charge $3.50 — my survey said people would pay that.” Whose information is that, and what can it not do alone?
8. Which changes would turn this into the start of a 92029 determination? Select all that apply.

Practise 92029 in Whetū