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Pricing

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

Viewing 2 posts - 1 through 2 (of 2 total)
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  • September 3, 2018 at 5:27 pm #471051
    vavneetb
    Participant
    • Topics: 175
    • Replies: 123
    • ☆☆☆

    While Calculation profit maximising price we use equation MC=MR but in BPP book under exam focus point it is mentioned that ‘Candidates had confused sales volume maximisation with profit maximastaion’

    So if we ask to calculate profit maximization we use MC=MR but what about Sales Volume?

    Sorry i am asking a lot of questions but these are all small last minute doubts. And in Exam Spelling error can cause marks deduction?

    Thanks a lot. Have a lovely evening 🙂

    September 3, 2018 at 5:46 pm #471079
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54814
    • ☆☆☆☆☆

    Are you sure it is referring to sales volume, and not to sales revenue?
    (Because exam questions have never asked about maximisation of sales volume, but they have asked about sales revenue)

    Sales revenue is maximised when MR = 0.

    (And you have a lovely evening also 🙂 )

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