MN2406K: We have been approached by a big new client to provide a preview day of yoga workshops and optional massages: Managerial Account, UOL, Singapore

Question 2.

We have been approached by a big new client to provide a preview day of yoga workshops and optional massages so they can see how we work and if this benefits their workplace. They have been very clear, if they like us, they will aim to use us regularly across five of their business sites – which is a huge win! Thus, we have promised to provide them this preview day at a low price, making sure we cover only our relevant costs but that is it.

Could you look at appendix A, where I have detailed all the usual costs we have on these days and explain which costs would be relevant and which would not be relevant. Can I be clear, a list of costs saying relevant or not, will not be helpful. I need good explanations using relevant costing knowledge and terminology around those we have included and not included to come up with the total cost and thus a low price we should charge.