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Pricing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Pricing

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 18, 2017 at 12:30 am #386772
    khuramch
    Member
    • Topics: 41
    • Replies: 29
    • ☆☆

    Sir i have a problem with BPP Kit mcq
    Q;A company is selling a product at a price of $120/U.At this price it sell 200000 units per period.IT has been estimated that for every $5 increase/reduce in price,sales demand will fall/increase by 10000 units

    I am able to find “a=220” and “b=.0005″

    But in your lectures you said MC is given in question as variable cost..But not in this Question
    So how we find ”’Selling price for maximised total sale revenue”??

    Many thanks

    May 18, 2017 at 6:59 am #386785
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54707
    • ☆☆☆☆☆

    Maximum sales revenue occurs when the marginal revenue (using the formula) is equal to zero.
    (It is when we are at the top of the revenue curve, so the extra/marginal revenue is neither increasing nor decreasing)

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  • The topic ‘Pricing’ is closed to new replies.

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