MARKET

Breakup of Production among Zones

The three different types of bikes produced have different breakups in sales in the past 5 years .Their average % of total production by a company is as follows: -

 

Type 1

Type 2

Type 3

Zone 1

15%

22%

26%

Zone 2

20%

38%

47%

Zone 3

25%

15%

10%

Zone 4

40%

25%

17%

 


Variation in Selling Price in Zones


What you enter in the decision form will be taken as your selling price in Zone 1 and accordingly we will take the selling price in each zone.
Example: -
Suppose a company quotes selling price of bike made from Type 1 as 100 spat .This will be the selling price in Zone 1.
For Zone 2 the selling price would be 90% of quoted price, i.e., 90 spat.
For Zone 3 the selling price would be 78% of quoted price, i.e., 78 spat.
For Zone 4 the selling price would be 67% of quoted price, i.e., 67 spat.
Same variation in selling price and breakup of production will be applicable to all future products produced by the organisation.