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Scenario or Tasks

Task- 1

Felco is an Oman based company, which manufactures two types of products A and B using same type of raw material for each product.

Supply of Raw material is Limited to 180,000Kg per Year. The Outsourcing Company can supply both the products and has quoted a price of $36 per unit of A and $52 per unit of B.

The following additional data is available:

Product AB

Demand (units)1800016,000

Variable cost to make ($ per unit)2232

Raw Material Required (KG per unit)) 7kg16kg


  1. Which products should the company make and which should it buy?2 Marks
  2. The availability of Material B is limited to 8,000 kg. Based on the limited materials what should be the decision? 6 Marks
  3. Based on your calculations in II which product should be outsorced and how much? 4 Marks

Task -2

In the modern world, there are many more influence on price than cost. Electrical Plc has introduces a new innovative electronic product EX which is set to have a high demand. There is no other similar product in the market that is like EX.

a)Discuss the different factors, which can influence the price of a product of Electrical PLC. 8 Marks

Contents of the Assignment should be:

ØTitle Page



ØTask 1 & Task 2



  • Support your assignments with relevant graphs, charts,tables(quantitative data) ifapplicable. Maximum 1200 words(+ / - 10% margin )


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