Hi! Can I ask for help? I may have answers but its confusing me. Need a opinion.

Activity: Pricing

The Kanluran Company's cost structure for a certain item at a level of 20,000 units per month is as follows:

Manufacturing Costs:

Direct Materials Direct Labor Variable Indirect Cost Fixed Indirect Cost P100.00 120.00 80.00 50.00

Selling and Other Costs:

Variable Fixed P150.00 90.00

Required:

1. Determine the selling price if the company is planning to set up a selling price with a mark-up of 50% based on conversion costs.

2. Compute the selling price if the company is planning to set up a selling price with a mark-up of 40% based on full production costs.

3. Calculate the selling price if the company is planning to set up a selling price with a mark-up of 45% based on variable production costs.

4. Determine the selling price if the company is planning to set up a selling price with a mark-up of 30% based on full (total) costs.

5. Calculate the selling price if the company is planning to set up a selling price with a mark-up of 35% based on variable costs.

6. Determine the selling price if the company is planning to set up a selling price with a mark-up of 60% based on prime costs.

7. Determine the minimum basis for break-even price considering the following:

The company desires to enter a foreign market, in which price competition is keen. An order for 10,000 units of this product is being sought on a minimum price basis. It is expected that shipping costs for this order will amount to only P75 per unit but that fixed costs of obtaining the contract will be P400,000. Dommestic business will be unaffected.