A supplier of components announces that he has to raise his prices by 10%, because he has

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A supplier of components announces that he has to raise his prices by 10%, because he has lost a major customer. He states he is now forced to spread his overheads across a smaller production volume. What costing method does this supplier use? What do you think of that? Assuming that this supplier is important to you, how would you deal with the supplier's request? What steps would you take?

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Akshay Agarwal

I am a Post-Graduate with a specialization in Finance. I have been working in the Consulting industry for the past 8 years with a focus on the Corporate and Investment Banking domain. Additionally, I have been involved in supporting student across the globe in their academic assignments and always strive to provide high quality support in a timely manner. My notable achievements in the academic field includes serving more than 10,000 clients across geographies on various courses including Accountancy, Finance, Management among other subjects. I always strive to serve my clients in the best possible way ensuring high quality and well explained solutions, which ensures high grades for the students along-with ensuring complete understanding of the subject matter for them. Further, I also believe in making myself available to the students for any follow-ups and ensures complete support and cooperation throughout the project cycle. My passion in the academic field coupled with my educational qualification and industry experience has proved to be instrumental in my success and has helped me stand out of the rest. Looking forward to have a fruitful experience and a cordial working relationship.

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