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Question 6 (7 marks) In your own words, suggest to the Manager of the New Products Division of a mobile phone company about the pricing

Question 6 (7 marks)

  1. In your own words, suggest to the Manager of the New Products Division of a mobile phone company about the pricing of new products.

Word limit: 250 words (4 marks)

  1. ElectrozLtdhasthefollowingdataconcerninga model electric caritmanufactures:
  • Variablemanufacturingcost $45
  • Appliedfixedoverhead $15
  • Variablesellingandadministrativecost $ 10
  • Allocatedfixedselling andadministrativecost $18

Required:

Ifthecompany usescost-pluspricingbasedonmanufacturingcosts,determinethemark-uppercentageusedbythecompanytoobtainapriceof$150. (3 marks)

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