Decision making

RB co

Just over two years ago, RB Co was the first company to produce a specific 'off-the-shelf' accounting software package. The pricing strategy, decided on by the managing director, for the packages was to add a 50% mark-up to the budgeted full cost of the packages. The company achieved and maintained a significant market share and high profits for the first two years. Budgeted information for the current year (Year 3) was as follows.

Production and sales 15,000 packages

Full cost $400 per package