Exam 5 Question 1 part 5 Clearly there are marked differences in the unit costs A B C Prev. Cost 190 200 135 Revised cost 212 150 386 Prev. SP 285 300 202 An examination of the overheads show that volume is not the best driver and therefore inappropriate for determining consumption ratios. Costs are more aligned with batch drivers Product C at the current SP is not profitable. Product B is overpriced at the target of 50% mark-up Product A is reasonably priced. Actions Change SP for B (lower) which may lead to greater volume. Abandon product C or determine if the market will pay the higher price