How many of L is needed? 1,200 300 600 900 1,800

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective
pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items.
Explode the bill of material (BCOM).
J
К (2)
L (3)
М4)
How many of L is needed?
1,200
300
600
900
1,800
Transcribed Image Text:You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material (BCOM). J К (2) L (3) М4) How many of L is needed? 1,200 300 600 900 1,800
Expert Solution
Given information:

The gift bag is being given as a complimentary to all the party attendees that are prospects for the pledges in an organization. The forecast is 200 attendees. It means 200 bags must be produced. Each bag(J) requires 2 units K, 3 units of L, and 4 units of M.

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