ABC GAMA Ltd has a special product to sell some of its old stock, quantity 5000 unit in the market as a limited period offer. The total cost of production of these products was

Rs 15000 and these products would have normally been sold out in the market at Rs40per unit. The enterprise is looking for three alternatives -


a. Repackage the products at Rs 25000 and sell all the quantities at Rs10 per unitb. Sell the items as scrap, at discounted prize of Rs 2 per unit
c. Dispose them off to another enterprise at an additional cost of Rs3000Discuss the important consideration in a decision making process of a firm, identify thethree alternatives available here, and evaluate the three alternatives reflecting which ofthe three alternatives to be accepted?

Answer rating: 100% (QA)

In a decisionmaking process for a firm several important considerations come into play 1 CostBenefit ... View the full answer