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Is this question within my reach if i have watched all your lectures from chapter 1 to chapter 7. i am asking because if you look at the topic index on page ix this question is in the section of pricing decision and i have just watched the chapter 7 lectures. the terms looks so unfamiliar.
I am puzzled as to which terms you find unfamiliar, because the only word that might be regarded as at all ‘technical’ is the word incremental (i.e. extra) which is certainly explained in the lectures and is standard anyway from Paper MA (was Paper F2).
This isn’t really a pricing question at all – it is really pure costing and following the instructions in the question. BPP have chosen to put it in the pricing section simply because they had to put it somewhere and part (c) relates to pricing.
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