UJK manufactures garden machinery. The company is dependent upon another manufacturer for the motors that power its products.
One of the factors that is being considered in a stress test requested by UJK’s Board is the possibility that the motor manufacturer increases its selling prices by 10% The motor accounts for a significant proportion of the overall manufacturing cost of UJK’s products
Which of the following are correct?
A . The motor manufacturer should be contacted and told that a substantial increase in selling prices would have a drastic impact on UJK
B . The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
C . UJK should estimate the impact on demand of increasing selling prices to pass on the increased cost of the motors.
D . The impact of absorbing the increased cost of motors on UJK’s profits should be calculated.
E . UJK should identify an alternative vendor of suitable motors as part of its stress test
Answer: C,D
Latest CIMAPRA19-P03-1-ENG Dumps Valid Version with 275 Q&As
Latest And Valid Q&A | Instant Download | Once Fail, Full Refund