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( c ) Zaifa is currently in procesween cost - based pricing and target costing. data reveals that productions of assigning price to one of
c Zaifa is currently in procesween costbased pricing and target costing. data reveals that productions of assigning price to one of the new toys of her company. Cost selling, general and adion cost of the new toy is BDT per unit. She expects that the estimas the will remain stable at BDT According to her taka sellinger unit. A recent market survey has indicated that one of rival company have been Require similar toy at a price of BDT taka.
Required:
i Using the gross margin pricing method, compute the mark up percentage and a suggested selling price for the toy that would yield the desired profit.
ii Determine the targeted cost of the toy if Zaifa plans to match the competitor price while keeping the desired profit level.
iii Determine the markup percentage for Zaifa based on competitor's sales price.
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