Question
Rami Industries wants to launch a new product (K2) in the market. The company expects 30% margin on selling price. The current market price of
- Rami Industries wants to launch a new product (K2) in the market. The company expects 30% margin on selling price. The current market price of the similar product is $300. The production cost of this product currently comes around $240 per unit.
Required: Calculate the reduction required in cost to meet the target cost per unit. (20 words)
[Marks: 5]
- PLC Industries has developed a new product called K2 with a full cost of $730. The company desires a 20% mark up on selling price.
Required: If the company adopts cost plus pricing method for the selling prices, calculate the mark up and the selling price of K2. (25 words)
[Marks: 5]
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Auditing The Art And Science Of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp
11th Edition
0132088061, 978-0132088060
