Question 6. Pricing and product mix decisions (15 marks) Sun Pharmaceuticals Pty Ltd is a wholesaler that specializes in packaging bulk drugs, in standard dosages, for local hospitals. The company has been in business for seven years and has been protable since its second year of operation. Jenny White, the assistant accountant, installed a standard costing System after joining the company three years ago. The Starbright Children's Hospital has asked Sun Pharmaceuticals Pty Ltd to bid on the packaging of one million doses of medication at total product cost plus a markup on the total cost of no more than 15 per cent. Starbright denes total product cost as including all variable costs of performing the service, a reasonable amount of xed overhead and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Starbright has indicated that any bid more than $0.045 per dose will be rejected. Jenny White has accumulated the following information prior to the preparation of the bid: $36 ...dm1.b...h... DLH Variable overhead $18 er DLH Fixed overhead $30 er DLH $ sooofonheomer 3,000 doses cram Required a) Calculate and explain the minimum price per dose Sun Pharmaceuticals Pty Ltd could bid for the Starbright job without reducing its profit. (5 Marks) b) Calculate and explain the bid price per dose using the total product cost and the maximum markup specified by Starbright. (5 Marks) c) Explain two (2) factors that influence the product mix decisions in Sun Pharmaceuticals Pty Ltd