14 Muna Enterprise produce and sells Shower Foam for nearby market. The business currently set selling...

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14 Muna Enterprise produce and sells Shower Foam for nearby market. The business currently set selling price at production cost plus 40% profit margin. Miss Muna, an owner of the business plans to introduce new product, Bidara Shower Gel in the market. After conducting market research, she found that competitors sell similar product at RM45 per bottle. The following information relates to the production cost per bottle of a new product: Variable production cost RM20 Fixed production cost RM10 Variable selling and administrative expenses Fixed selling and administrative expenses RM5 RM8 Fakulti Perakaunan Determine the cost gap that Muna Enterprise sholud close. ABCD A. RM30 B. RM27 C. RM18 D. RM3 (2 marks) 14 Muna Enterprise produce and sells Shower Foam for nearby market. The business currently set selling price at production cost plus 40% profit margin. Miss Muna, an owner of the business plans to introduce new product, Bidara Shower Gel in the market. After conducting market research, she found that competitors sell similar product at RM45 per bottle. The following information relates to the production cost per bottle of a new product: Variable production cost RM20 Fixed production cost RM10 Variable selling and administrative expenses Fixed selling and administrative expenses RM5 RM8 Fakulti Perakaunan Determine the cost gap that Muna Enterprise sholud close. ABCD A. RM30 B. RM27 C. RM18 D. RM3 (2 marks)