Which pricing strategy is most suitable for a new Malaysian tech startup entering a competitive market?

In full cost-plus pricing, the selling price is derived by

Which of the following best describes market skimming pricing?

When deciding to purchase a new cutting machine or continue using the old machine, the following costs are all relevant EXCEPT the:

Chloe Co. manufactures component Part AZY used in several of its engine models. Monthly production costs for 10,000 units are as follows:

It is estimated that 20% of the fixed support costs assigned to component Part AZY will no longer be incurred if the company purchases the part from the outside supplier.

Chloe Co. has the option of purchasing the part from an outside supplier at $16 per unit.

Required:

(a) If Chloe Co. accepts the offer from the outside supplier, what is the total amount of avoidable costs (costs that will no longer be incurred) per month?

(b) If Chloe Co. purchases 10,000 units of Part AZY parts from the outside supplier per month, then what is the impact of its monthly operating income?

(c) What is the maximum price that Chloe Co. should be willing to pay the outside supplier for each unit of Part AZY?

JananiM Co. has a printing department that is considering whether to print brochure to promote a charity function. The brochure requires 250 reams of a special type of paper.

The department currently holds 100 reams in inventory of which it bought at £15 per ream last year. These will have a resale value of £10 per ream.

The current market price of the paper is £26 per ream.

What is the relevant cost of the paper that the department should consider if it decides to print the brochures? 

Mirza Co. has three divisions and the information for the year ended December 202X is as follows:

# The general fixed overheads are allocated to each division on the basis of sales revenue.

Using the relevant costing approach, which division(s) should remain in operation if Mirza Co. wishes to maximise profits?

When deciding whether to discontinue a segment of a business, managers should focus on:

When there is excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price when:

When deciding to accept a one-time-only special order from a wholesaler, management should do all of the following EXCEPT: