Sir,for PYQ Sep/Dec 2016 Q1 part (a)
Question paper note 7: it stated that "it was agreed that if the customer ordered an additional 5,000 units, a volume discounted price of $950 per unit would apply."
Why did the answer assume the customer will order an additional 5000 unit? can the customer be order only 13000 unit(6000+7000) as the question did not say clearly, therefore, the discounted price did not apply?
Thank you.
Zippy
He's just explaining what would happen if they did the order the extra inventory - it's good sometimes if you give a range of answers
As always, whether or not you get a different answer doesn't matter - they are marking you on the quality of your explanation.
Please can you repost, using a relevant thread header and summarising the issue for other candidates.
Bear in mind that this is very much old syllabus.
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