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QUESTION 6 Pharmacia Sdn Bhd sells product A in Market 1. The following information relates to the markets available for product A. Market 1 Market

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QUESTION 6 Pharmacia Sdn Bhd sells product A in Market 1. The following information relates to the markets available for product A. Market 1 Market 2 Market 3 Volume per year 100,000 units 500,000 units 1,000,000 units Sales Price 5 million 5.5 million 6 million Transaction costs 0.1 million 0.15 million 0.2 million Transportation costs 0.1 million 0.15 million 0.1 million REQUIRED: (a) Calculate the possible fair value for productA in Market 1, 2 and 3. (b) Determine the principle market. (c) Determine the most advantageous market. ((1) If Pharmacia Sdn Bhd is unable to sell in Market 3 given to some restrictions, calculate the fair value of product A

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