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John Moffat.
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Iqra-nasir
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I had a question regarding part C
which says to calculate selling price per 100 ml for the female version of the product that would ensure further processing would breakeven in the test month.
In this they have incuded the incremnetal costs of further processing female perfume and the revenue which was earned from the standard version of female perfume.
Can you kindly explain me why the standard revenue was taken into consideration ?
John Moffat
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If they do further processing then there are more costs incurred. So they have to charge a higher price for the product than they would be charging if they were not doing the extra processing.
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