Question: PT ACCESSORY is a company that manufactures mobile accessories, namely: USB data cable, power bank, and stick for taking a photo. The company operates in

PT ACCESSORY is a company that manufactures mobile accessories, namely: USB data cable, power bank, and stick for taking a photo.
The company operates in a monopolistic market. The manager of PT ACCESSORY applies the concept of cost-plus-pricing.

The concept of cost-plus-pricing is that the selling price per unit of product is calculated by adding up all costs per unit plus a certain amount as the desired profit or margin for the unit. The concept is carried out by means of all product prices subject to a selling price twice the average total cost (ATC). Thus the mark-up for the cost of all products is 100%. Price elasticity of demand for USB data cable, power bank, and stick for taking a photo are -2.5, -1.5 and 2.0, respectively.
Please evaluate by marking up 100%.

Explain whether PT ACCCESSORY managers have implemented the cost-plus-pricing method correctly or not and give the reason!

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