Problem 12-19A (Algo) Allocating indirect costs between products LO 12-2, 12-3 Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $16,650. The booth will be open 37 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $175 per package. She will continue to sell the existing product, EZRecords, which costs $90 per package. Ms. Ortega believes that the salesperson will spend approximately 27 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 84 units of EZRecords and 44 units of ProOffice. . Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 200 units of EZRecords and 106 units of ProOffice. For all requirements, round "Cost per unit" to 2 decimal places.) a. Total cost of sales Cost per unit b. Total cost of sales Cost per unit EZRecords ProOffice

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.