Exercise 3.22 Thaler Company brought $26,000 of raw materials a year ago in anticipation of producing 5,000 units of a deluxe version of its product to be priced at $75 each. Now the price of the deluxe version has dropped to $35 each, and Thaler is now deciding whether to produce 1,500 units of the deluxe version at a cost $48,000 or to scrap the project. What is the opportunity cost of this decision? a. $175,000 b. $375,000 c. $48,000 d. $26,000

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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.