Saranghae Corporation is a company that produces freeze-dried packed products. Currently, it is developing a new packed freeze-dried kimchi fried rice to cater for Korean travellers who want to savour local food when they are in foreign countries.

a) Describe the suitable pricing strategy that the company may pursue for the new product

(6 marks)

b)If the unit cost of the packed Kimchi fried rice is 3000 and the company wants adesired return on sales of 20%, what would be the selling price of the product?

(2 marks)

c) Ifthe fixed costs for the Kimchi fried rice equaled 2,100,000 the price is set at 3000 and the variable cost is 1500 per pack, what would be thebreakeven volume?

(2 marks)