Building Contractors Limited ("BCL) is a company that supplies a unique semi-conductor that is required in the construction industry. The semi-conductor costs a variable cost of N$6 per unit and the company's total fixed costs for the year are N$120 000. For the forth coming year, BCL has budgeted to produce 40 000 semi-conductors. It is company policy to determine the price of semi-conductors using a full cost plus levied at 20%. The marketing manager of BCL is not happy with the current pricing policy and she feels this policy is reducing the amount of conductors that can be sold in a year. She has asked for a reveal of the pricing policy. She has provided the following proposed prices and the corresponding demand from her research: Price per semi-conductor Demand (units) N$8 60 000 N$8.5 50 000 N$9 40 000 N$9.5 35 000 N$10 30 000 BCL does not have any limitations in meeting the units demanded as proposed by the marketing manager. The fixed costs will remain unchanged. Marks Required Sub- Total total a) Determine the price per semi-conductor that should be charged applying 5 5 the current cost plus policy. Advice BCL on the price to charge for their semi-conductors per unit b) 11 16 basing on the information provided by the marketing manager