Company specialized in manufacturing ceramic products

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Reference no: EM131316431

Florim is an Albanian company specialized in manufacturing ceramic products. The company realizes its revenue by selling six products, as reported in given Table.

Table : Annual revenue (in €) and amounts sold of the products of Florim.
Product	Sales	Quantity
1	350000	2700
2	160000	2200
3	920000	2500
4	125 000	1500
5	360 000	4200
6	160000	I900

Let y = [(1 + α₁)x] / (α₁ + x) be the equation of the 80-20 curve C₁ defined such that the first 21% of products sold correspond to 68% of the annual sales; similarly, let y = [(1 + α₂)x] / (α₂ + x) be the 80-20 curve C₂, obtained by assuming that the first 21% of products correspond to 62% of the annual sales.

Check which of the curves C₁ and C₂ is a better approximation of the actual trend of the cumulative percentage of the annual sales with respect to the cumulative percentage of the amounts sold.

Reference no: EM131316431

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