CASE STUDY 
Hospitality furniture Ltd. Produces furniture for Hotels Public houses using specific designs prepared by interior design consultants. Business fast and the market highly competitive with the number rival companies. The company’s pricing policy based marginal costing technique is generating high sales. 
Home furniture Ltd. Produces limited range of standard lounge for household use. The company also offers service constructing furniture to customers designs. The work undertaken utilize the spare capacity. to the recession consumer speeding on household durables has decreased recently and as result the company experiencing significant reduction order for standard lounge sofas. Company’s pricing policy to add percentage mark full cost.
REQUIRED: 
a) Explain why different pricing policies may be appropriate in different circumstances. 
b) Illustrate your answer by reference to the hospitality furniture and furniture Ltd, 
Note: the minimum words 500 including introduction and conclusion and free plagiarism 

 

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