Assume that XYZ Ltd is trying to set the selling Price for one of its products and three ptices are under consideration. These are Sh$\mathrm{.}4,$ Sh$\mathrm{.}4\mathrm{.}30$ &e Sh$\mathrm{.}4\mathrm{.}40$

The following information is also provided

Required:

Advice the company on the best price to set

Alternatives

Conditions

Sh$\mathrm{.}4\mathrm{.}00$

Sh$\mathrm{.}4\mathrm{.}30$

Sh$\mathrm{.}4\mathrm{.}40$

Best possible

$16,000$

$14,000$

$12,500$

Most likely

$14,000$

$12,500$

$12,000$

Worst possible

$10,000$

$8,000$

$6,000$

Fixed costs

Sh$.20,000$

variable cost per unit $=$ Sh$.2$