Gaming Limited produces its 'e-sports' keyboard and mouse sets. The company currently produces 250 of its 'e-sports' sets each month. The costs per set are shown below: Materials 5 kgs 20 per kg Labour 5 hours 15 per hour Total fixed costs 26,250 per month The company uses cost-plus pricing and the selling price is set at 160% of the total cost per set. If production exceeds 300 sets in any one month, overtime will be paid at a rate of 25 per hour for each extra labour hour worked. The company has received an order from a new customer. This order will increase total production for each of the following months to 375 sets You are required to: 

a) Calculate the total cost and selling price per set under the current production of 250 sets per month 

b) Calculate the total cost and selling price per set if the order is accepted and 375 sets are produced 

c) Compare and comment the change between the new selling price and the original selling price

Answer rating: 100% (QA)

Gaming Limited Costing and Pricing Analysis a Current Production 250 sets Materials Cost per kg20 Re... View the full answer