A.

B.

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D.

Consider this conversation between two work colleagues: Carole: Hey Fong, what did you say you needed these otherselling prices for again? Fong: I'm trying to figure out if my potential customers will be willing to pay what want to charge for myclever upgrade to plasticstorage containers. Carole: Oh, wow, that sounds super exciting; thanks for including me in this analysis. Fong: You just wait, Carole. l'm going to make a dent in this market, and then we'l see who retires at age 45 ! Carole gathered the following selling price information about other plasticstorage containers on the market However, without access to competitors' internal records, she could not determine their costs. Meamwhile. Fong made note of his production cost and secretly smiled to himself as he thought about what a great idea he had. He want to make plasticstorage containers that have a locking lid. More than that, the lid locks quietly, so noone knows you're sneaking a treat from the container lyes. Fong got busted stealing Carole's famous choolate cookies, and he vowed to fix this problem permanently]. Here's his estimated costs to produce and sell one 913 plasticontainer with quiet, spill-proof lid: Do you think customers will be willing to pay $23.40 which is besed upon a markupon cost of 30% ? Explain. If Fong can reduce his DM and MOH cost by 30% each, the newselling price will be $19.50, while the selling price is $2340 per unit without the 30% cost reduction. Which of these two price point would you recommend for him at that stage of his business, and why? If Fong decides to offer a bunde of containers, one of each of the three sizes, for a combined price of $50, the company will earn a markup of 2195\%. Would this be a good option for Fong? Why or why not? After one year, when his product cost went down as expected in part ibl. a potential client offered Fong $15.50 each for 200 of the 913 containers. Fong has available capacity to take on this special order, but he is cautious of doing so, worried that others will expect the same deal. Assume 40% of the MOH cost are variable and 20% of the administrative costs are variable. No newselling expenses would be incurred for this specialorder. Qualitatively, is this special order a good idea? Explain. Consider this conversation between two work colleagues: Carole: Hey Fong, what did you say you needed these otherselling prices for again? Fong: I'm trying to figure out if my potential customers will be willing to pay what want to charge for myclever upgrade to plasticstorage containers. Carole: Oh, wow, that sounds super exciting; thanks for including me in this analysis. Fong: You just wait, Carole. l'm going to make a dent in this market, and then we'l see who retires at age 45 ! Carole gathered the following selling price information about other plasticstorage containers on the market However, without access to competitors' internal records, she could not determine their costs. Meamwhile. Fong made note of his production cost and secretly smiled to himself as he thought about what a great idea he had. He want to make plasticstorage containers that have a locking lid. More than that, the lid locks quietly, so noone knows you're sneaking a treat from the container lyes. Fong got busted stealing Carole's famous choolate cookies, and he vowed to fix this problem permanently]. Here's his estimated costs to produce and sell one 913 plasticontainer with quiet, spill-proof lid: Do you think customers will be willing to pay $23.40 which is besed upon a markupon cost of 30% ? Explain. If Fong can reduce his DM and MOH cost by 30% each, the newselling price will be $19.50, while the selling price is $2340 per unit without the 30% cost reduction. Which of these two price point would you recommend for him at that stage of his business, and why? If Fong decides to offer a bunde of containers, one of each of the three sizes, for a combined price of $50, the company will earn a markup of 2195\%. Would this be a good option for Fong? Why or why not? After one year, when his product cost went down as expected in part ibl. a potential client offered Fong $15.50 each for 200 of the 913 containers. Fong has available capacity to take on this special order, but he is cautious of doing so, worried that others will expect the same deal. Assume 40% of the MOH cost are variable and 20% of the administrative costs are variable. No newselling expenses would be incurred for this specialorder. Qualitatively, is this special order a good idea? Explain