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Pricing Decision

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

  • This topic has 4 replies, 3 voices, and was last updated 2 years ago by VikasK.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • April 12, 2023 at 6:56 pm #682558
    VslVsl
    Participant
    • Topics: 4
    • Replies: 3
    • ☆

    Are graphs important for the questions of pricing decision, I was able to understand the concepts (equation and tabular method), but I’m not much comfortable with the graphs

    April 12, 2023 at 7:25 pm #682562
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1511
    • ☆☆☆☆☆

    They are not examined that way

    April 13, 2023 at 4:30 am #682569
    VslVsl
    Participant
    • Topics: 4
    • Replies: 3
    • ☆

    And there are 2 topics related to this chapter in study text
    1. Increase in Production Levels
    2. Volume Based Discounts.

    Are these 2 topics examinable as these are not mentioned in Syllabus but are still present in study text

    April 13, 2023 at 2:04 pm #682590
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1511
    • ☆☆☆☆☆

    They are for example:

    You could get asked to derive the equations for the total cost function if there are volume-based discounts.

    Fixed cost was 100,000 and variable $ 5 per unit up to 6,000 units
    10% discount on all units purchased over 6,000
    So the answer would be
    Y = 100,000 + 5x < 6,000
    Y = 100,000 + 4.5x > 6,000

    And you could get asked when an opportunity has arisen to increase sales & production.
    Will it increase the contribution generated from increase in sales & production will it exceed any additional fixed costs due to increased sales?
    You must do an analysis of whether the opportunity should be accepted.

    April 13, 2023 at 4:45 pm #682602
    VikasK
    Participant
    • Topics: 98
    • Replies: 118
    • ☆☆☆

    Thankyou

  • Author
    Posts
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