However the company can export 20000 units at Rs 350 per unit The company is

However the company can export 20000 units at rs 350

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However the company can export 20000 units at Rs. 3.50 per unit The company is considering entering the export market and is considering two options- i. Export 20000 units at Rs. 3.50 per unit and sell nothing in the domestic market ii. Sell 10000 units in the domestic market at Rs. 4.50 per unit and export 20000 units at Rs. 3.50 per unit Fixed costs remain unchanged up to 20000 units of production but go up by 25 percent beyond 20000 units. For exports, the company will have to incur additional costs as follows- Packing 40 paise per unit. Shipping 20 paise per unit. However the Company will get export incentives of 80 paise per unit Analyze the two options for the company and recommend with reasons the option the company should choose. 202
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PROBLEMS FOR EXERCISE 37. Murphy Sales Ltd. provides the following data on performance of its salesmen- Table no: 45 Evaluate the performance of the 3 salesmen. Give appropriate comments. If you were the sales manager, mention criteria you would use in evaluation of your salesmen in addition to the criteria used above. Particulars Pramod Piyush Ajay Sales Rs. lacs 75 120 150 Sales potential Rs. lacs 100 150 200 Sales expenses Rs. lacs 5 10 15 Salaries and bonuses 2 3 3 Daily allowances 100 100 100 No. of calls per day 6 10 10 Avg. orders booked per day 5 8 15 Avg. collection period 30 days 45 days 50 days 203
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