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(b) The marketing director of PDR plc is concerned at the company's inability to meet the quantity demanded by its customers. Two alternative strategies are

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(b) The marketing director of PDR plc is concerned at the company's inability to meet the quantity demanded by its customers. Two alternative strategies are being considered to overcome this: (i) to increase the number of hours worked using the existing machinery by working overtime. Such overtime would be paid at a premium of 50% above normal labour rates, and variable overhead costs would be expected to increase in proportion to labour costs

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