Dec 18

QUESTION 3 (20 MARKS) Fizzy Drink Ltd is planning to introduce a new soft drink in Mauritius. The directors of the company are having diverging opinions as to the pricing policy to be adopted for their new product. The cost-plus approach has been recommended to the company for the new product. REQUIRED a) Explain the concept of cost-plus pricing approach. Critically assess the application of this approach by Fizzy Drink Ltd for its new product in Mauritius. (10 Marks) b) Suggest and explain at least three (3) other pricing policies which could be adopted by Fizzy Drink Ltd for its new product. (10 Marks)