Your friend is starting a new company and wants your help since you are taking Managerial Accounting. The item they want to sell they are estimating will cost $40 and sell for $50. There are similar items on the market that sell for $52. (Answer each separately and do not paraphrase/quote from the book and have complete sentences. You are graded based on your first response.)

1. What costing questions should be asked before making a decision about producing the product for sale based on what you learned in chapter 6 (focus on this chapter please)? Provide at least 4 questions and why the information would be helpful.

2 What would you recommend and why?