An appliance company manufactures its product in 3 models-Mini, Midi and Max. The company uses a company-wide absorption costing system based on...

40%

Required:

A: Calculate the "full cost" and selling price of each product, determined by (i) Absorption costing.(ii) ABC costing.

B: What are the implications of the two methods of costing in this situation, and what are the strategic options for the business in light of the new information? Back up your comments with appropriate calculations.