You've 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 friend's queries. Provide specific guidelines that he can follow. Include examples in your answer. (4 marks) (Word limit: 200 words)

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

product further	current sales	additional processing cost	sales value if processed
coffee beans	$8000	$3000	$10000
chocolate malt	$5000	$2000	$7000

Required:

Which of the products should be processed further?