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A Brief Report determining the Production Level which should be adopted by Cuddly Cards
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A Brief Report determining the Production Level which should be adopted by Cuddly Cards Introduction Cuddly cards have requested a brief report analysing the different combinations of production concluding with the most profitable and least profitable methods. The data given were predictions summarised as a probability distribution of possible sales, fixed and variable costs and two possible retail prices. The difficulty with my predictions lay in the fact that there was a great deal of uncertainty. The five different sales volumes were summed up as probabilities which lack 100 % accuracy. Fixed costs could alter between £20,000 and £25,000 depending on rates and rent. There was also a possibility that sales revenue per hundred cards could change from £50 to £40 due to the competitiveness of that market. With so many uncertainties, the only solution was to draw up three tables comprising of each individual possibility with all of the...
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