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Section A and B was ok, but in section C I got performance measurement and cvp which was so tricky.
Okay sir got it. But if in inelastic demand customers are not sensitive to advertising and promotion then statement 2 shouldn’t be correct in question 2?
Following statement have been made about the price elasticity of demand for the product.
1. Price elasticity of demand may be reduced by means of advertising and sales promotion activities.
2. When elasticity of demand is very inelastic customers are not sensitive to enterprise or advertising and sales promotion activities.
Which of the above is are correct?
A. 1only
B. 2 only
C. Neither 1 nor 2
D. Both 1 and 2
Sir in this question option A is correct can you explain how stat 1 is correct and stat 2 is false?MN manufacturers automatic industrial trolley known as TRLs. Each trolley stlells for 2000 and material cost per unit is $800. There is no limit to sales demand. Cost next you will be to $264000 for factory labours $834000 production overheads and $265000 for marketing and administrative cost.
Tha trolleys are made on two different machines. Machines and can produce the part for 40 each week but it is old and unreliable and it breaks down from time to time. It is estimated that on average 15% of production time on this machine is lost. Machine Z, that which is reasonably reliable can produce and assemble 30 trolleys per week.
The company has recently introduced just in time system and it is the company policy to hold little work in progress and not finished goods inventory from week to week. The company operates s 40 hours week 48 weeks a year
The throughput accounting ratio for the key resource for an average next year will be:
A. 1.078
B. 1.268
C. 1.338
D. 1.574
Sir in this question how will we do the adjustment of Idle time of machine X and after adjusting the Idle time how will we find units of machine X?
