3. Now assume the cost base is variable cost-what is the mark-up and the resulting price?

4.Describe the skimming price and penetration pricing approaches to pricing new products. Provide an example of each.

5...Hammill Ltd manufactures 2 types of sailing boats, Yachts and Skiffs.

Data for each (per unit) is given below:

Profits 5000's Weather Sunny State Rainy Type of shop Ice Cream Umbrellas Both 60 20 15 40 45 15 Yachts Skiffs Sales Price $50,000 $60,000 Direct Material Cost $4,000 $7,000 Direct Labour Cost $14,000 $21,000 Variable O/H Cost $10,000 $9,000 Other Variable Cost $12,000 $10,000 Labour Hours required per unit 145 200 Maximum Demand 90 50