Hey all,
currently I'm working on my first case study in University with the central issue of product pricing. To determine whether it is more profitable to price 75p or 99p per bottle a costing table is given(attachment). Now my first approach would be to determine all the relevant and irrelevant costs from this table.
For the moment I decided to just set Fixed Department Overhead as an irrelevant cost due to the fact that Factory Overhead and SG&A both depend on relevant costs. Am I right so far or am I moving into the wrong direction?
Any help is appreciated
Thank you!
currently I'm working on my first case study in University with the central issue of product pricing. To determine whether it is more profitable to price 75p or 99p per bottle a costing table is given(attachment). Now my first approach would be to determine all the relevant and irrelevant costs from this table.
For the moment I decided to just set Fixed Department Overhead as an irrelevant cost due to the fact that Factory Overhead and SG&A both depend on relevant costs. Am I right so far or am I moving into the wrong direction?
Any help is appreciated
Thank you!
