Plastic cups are made by forming of raw plastic. The price of plastic is 4.500 OMR per kg and the price of plastic cups is 13 OMR per 1000 cups. Plant requires different machine which cost about 50,000 OMR, but the machines has to be imported, after paying 25% as customs duty. On a graph paper, draw a freehand graph and represent all important parameters. Due to increase in plastic price, the break-even quantity has increased by 10%. Find out the new plastic price?

Plastic cups are made by forming of raw plastic. The price of plastic is 4.500 OMR per kg and the price of plastic cups is 13 OMR per 1000 cups. Plant requires different machine which cost about 50,000 OMR, but the machines has to be imported, after paying 25% as customs duty. On a graph paper, draw a freehand graph and represent all important parameters. Due to increase in plastic price, the break-even quantity has increased by 10%. Find out the new plastic price?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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