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When the NES Group Lowered the Price of Its Professional-Grade

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When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600,demand doubled from 4 units sold per month to 8 units per month.However,total revenue dropped.This is an example of:


Definitions:

Raw Materials Inventory

Raw materials inventory accounts for the total cost of all components and materials that are yet to be used in the manufacturing process.

Budgeted Production

The quantity of products a company plans to produce over a specific period, based on forecasted sales and inventory levels.

Materials Needed

The raw goods and components required for the manufacturing or production of products.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used for managing liquidity and ensuring financial stability.

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