Neon Motors is a dealer in motorcycles in Germany. It has an operating policy slightly different from
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Neon Motors is a dealer in motorcycles in Germany. It has an operating policy slightly different from the other dealers in the industry. Each month, Neon aims at a unit volume quota that approximates its break-even point. Until the break-even point is achieved, Neon follows a premium pricing policy, under which the minimum deal value must contain a relatively high markup in order to ensure a contribution to profit of at least €250. Once the break even is reached, units are quoted at a lower price for the rest of the month.
What do you think about this policy? As a prospective buyer, how would you react to this policy?
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Related Book For
Introduction To Management Accounting
ISBN: 9781292412566
17th Edition, Global Edition
Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler
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