Question: (h) Machine Hours Allocation (max. 4,200) Production Quantity (h+d) C) Purchase Quantity (1,200 - 900) 3. Other Requirements / Aspects: 1,500 hrs 1500 units Nil

(h) Machine Hours Allocation (max. 4,200) Production Quantity (h+d) C) Purchase Quantity (1,200 - 900) 3. Other Requirements / Aspects: 1,500 hrs 1500 units Nil (bal, fig) 2,700 hrs 900 units 300 units (a) Stability of Purchase Prices for A & C (b) Sale Price of 'A' to cover increased costs of buying 900 units. 17 Question 1(b): Pricing 5 Marks The following independent situations relate to New Product Pricing. Classify the Products into the appropriate category: Revolutionary Product (RP), or Evolutionary Product (EP) or a Me-Too Product (MP) and state the corresponding pricing to be followed. You may present only Columns I, III & IV. You are required to explain the pricing in one sentence. SI No. Situations RP/EP/MP Pricing 1.1 IV 1 Adjustable work table like a stool, has been successfully capturing the market. Company X makes a small variant of this product and is trying to enter the market. R&D has just been completed on an innovative Computer Processor in the shape of a pen, 2 with accompanying Pen-Like Devices to act as Keyboard Projector and Monitor Projector. This is expected to get the Laptops out of Business due to extreme ease of portability of just 3 Pen-Like Light Weight Devices A successful Mobile Manufacturing Company has built into its latest Mobile Phone, an additional sliding screen and improved its processor capabilities so that the phone is almost a Laptop 3
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