a) Youve been approached by a friend who has sought your advice about pricing products for his video production business. He indicated that he has several new products ready to be launched and wants to review the prices of existing products.

Required:

Prepare a response to answer your friends queries. Provide specific guidelines that he can follow. Include examples in your answer.

b)

Product Current Sales Additional Processing Sales Value if Value Costs Processed Further

Coffee beans $ 8 000 $ 3 000 $10 000

Chocolate malt $ 5 000 $ 2 000 $ 7 000

Chocfee Dairy Ltd gathered this data for two of its products that it produces:

Required:

Which of the products should be processed further?