TCC Limited is developing a new machine, machine that it plans to sell to coin to operate. Well, which is sold by a competitor. The management accountant of the company is doing a market research to determine appropriate selling price for the new machine. The management accountant gathered the following information regarding the cost of developing 400 new machine.

Variable cost = $214,000 Fixed cost = $130,000 Total cost $344,000

Management decided that the required markup is 30%.

Required:

1. What is the management accountants role in setting price of a new product?
2. List and explain 2 different pricing strategy that the business can use.
3. iii.What are some of the other factors that management need to consider while setting the price of the new machine.