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QUESTION 1 (25 MARKS) (a) Distinguish between penetration pricing and predatory pricing. (4 marks) (b) Discuss two (2) factors that influence the pricing decision. (4
QUESTION 1 (25 MARKS) (a) Distinguish between penetration pricing and predatory pricing. (4 marks) (b) Discuss two (2) factors that influence the pricing decision. (4 marks) (c) Felicia Sdn Bhd manufactures and sells a bakery equipment. In 2019, it reported the following: 40.000 Units sold and produced Variable cost per unit RM200 Total fixed cost RM2,400,000 Operating income RM3,800,000 Required: (0) Determine the selling price in 2019. (5 marks) (ii) Compute the percentage markup on total cost. (6 marks) Assume that Felicia desired to change its practice of computing a markup on total cost to a markup on variable cost. If the company wants selling price constant, the markup percentage increase or decrease? By how much? (6 marks)
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