12 BIL MOTOR COMPONENTS PLC (a) In an attempt to win over key customers in the motor i market share, BIL Motor Components plc have decided to their normal price for component TD463 when selling to being targeted. Details of component TD463's standard costs Standard cost dato Compone Batch size Machine Machine Group 1 Group 7 E E Materials (per unit) 26.00 17.00 Labour (per unit) 2.00 1.60 Variable overheads (per unit) 0.65 0.72 Fixed overheads (per unit) 3.00 2.50 31.65 21.82 Setting-up costs per batch of 200 units E10 Required: Compute the lowest selling price at which one batch of 200 critically evaluate the adoption of such a pricing policy