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What the traffic can bear pricing
Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms. This method brings high profit in the short term. But what the traffic can bear is not a safe concept. Chances of errors in judgment are very high. Also, it involves trial and error. It can be used where monopoly oligopoly condition exists and demand is relatively inelastic to prices. Buyer opposition or consumerism is bound to set in course of time when a firm sets its prices on the basis of what the traffic can bear.
ALGEBRAIC ANALYSIS The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study. The net cost is a semi-variable c
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The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration: Segment Quantity
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What is meant by the term Open Book Management? How does Open Book Management improve the organizations ability to achieve and improve results?
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