1
Q

What are the non-financial factors that need to be taken into account when making a final decision on the production plan

A
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2
Q

Discuss THREE non-financial considerations that would influence the percentage of profit mark-up that they apply on this order

A
  • Emergency order
  • Does LSC want the future business?
  • Can LSC cope with workload of future orders?
  • Signal that end price sends to customer
  • Will customer expect same mark-up on all future orders?
  • Could future orders with customer expand reputation and lead to additional new customers?
    Total 2 marks
  • Would final price be consistent with the market?
  • LSC strategy – cost leader or differentiator
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