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PM Chapter 7 – Pricing – example 6

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › PM Chapter 7 – Pricing – example 6

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 14, 2021 at 2:06 pm #610381
    avorobec
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    Dear John,

    First of all, thanks a lot for you help, this is immense work you are doing!

    I have a question on example 6 – my result is totally different from what is in the lecture answers. Could you please advise how we get to a = 120?

    If a = 100 [selling price] + (0.01[b] x 20,000 [current demand], surely we get to 300.

    Thanks in advance,
    Andrew

    February 14, 2021 at 2:57 pm #610394
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    b = 2 / 2,000 = 0.001 (not 0.01)

    100 + (0.001 x 20,000) = 120

    (I do assume that you are watching the free lectures working through the examples in the notes? Using the notes on their own is a waste of time because it is in the lectures that I also explain and expand on the notes.)

    February 14, 2021 at 9:15 pm #610424
    avorobec
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    Yes, thanks – silly mistake on my end 😀

    February 15, 2021 at 7:46 am #610452
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘PM Chapter 7 – Pricing – example 6’ is closed to new replies.

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