Final answer:
The selling price of platter trays depends on manufacturing costs, labor, overheads, desired profit margins, and market competition. It involves calculations tailored to each size and accounting for strategic pricing considerations. A clear, original example is provided for setting the selling price of a small platter tray.
Step-by-step explanation:
To determine the selling price of small, medium, and large platter trays, one must consider several factors such as cost of materials, labor, overhead expenses, target profit margin, and market competition. The actual price setting would involve detailed calculations and could also reflect marketing strategies such as psychological pricing or discounting.
For example, if the cost to produce a small platter is $5, labor is $2, and overhead is $3, with a desired profit margin of 20%, the selling price would be calculated as follows: Total cost = $5 + $2 + $3 = $10; Desired profit = Total cost x 20% = $2; thus, the Selling Price = Total cost + Desired profit = $12 for the small platter tray. Parallel calculations would be made for medium and large platters, adjusting for their respective costs.