A new product was manufactured by Shobha Ltd. and was placed for sale in three regional markets
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Question:
A new product was manufactured by Shobha Ltd. and was placed for sale in three regional markets for launching it nationally. Three prices were selected for testing each market.
Selected Prices (Sh.) 10 12.50 15
Estimated Sales (Nos.) 800 600 300
Production (Sh.) 2,520 1,890 945
Selling (Sh.) 400 350 200
Traceable Fixed Costs (Sh.) 700 700 600
Required:
From the above particulars, ascertain the price to give maximum profitability
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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