Question

Rocktop Corporation offers mountain-climbing expeditions for its customers, providing food, equipment, and guides. Climbs normally require one week to complete. The company’s accountant is reviewing historical cost data to establish a pricing strategy for the coming year. The accountant has prepared the following table showing cost data for the most recent climb, the company’s average cost per year, and the five-year average cost.


Required
Write a memo that explains the potential advantages and disadvantages of using each of the per-unit cost figures as a basis for establishing a price to charge climbers during the coming year. What other factors must be considered in developing a pricingstrategy?


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  • CreatedFebruary 07, 2014
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