Q3. The Coffee Revolution sells beverages in a variety of coffee flavors. Data for a recent week appear below:

Revenue (1,000 cups sold)

Cost of ingredients SAR640

Factory Rent 500

Depreciation expense office 360 1,500

a. Suppose the companys policy is to set prices based on a 250% markup above variable cost. Calculate the cost-based price per cup.

b. What is the mark up percentage if the company adopts product cost method and the required rate of return by shareholders is 10% on total assets of SAR 10,000