CASE 1: ALTERNATIVE PROCESSES for producing a product (same Selling Price) ABC Co. decided to introduce a new product which it ca manufacture by either CAPITAL Intensive method or a LABOR Intensive method. Estimated costs to be incurred under ead method follows: Capital Intensive Labor Intensive DM/u DL/u Variable OH/u 3.00 4.80 P5.00 $6.00 5.60 7.20 Fixed OH 2,454,000 1,320,000 Regardless of the method to be used, the estimated marketin ncos will omain €500 oluc #3/unit cold Alca th

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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.