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Gala2k [10]
3 years ago
11

Explain what test marketing is and its purpose?​

Business
1 answer:
prisoha [69]3 years ago
3 0

Test marketing is a marketing method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis before a wider release. Consumers exposed to the product or campaign may or may not be aware that they are part of a test group.

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The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production
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Total Equivalent Units Conversion    746,000

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Weighted-Average Inventory Method

Total Equivalent Units

                                     Units               Conversion     Equivalent Units

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<u>Add Ending WIP          180,000                70 %               126,000</u>

<u>Total Equivalent Units                                                      746,000</u>

<u />

<em>The total Equivalent units are obtained by adding the percent of the units in the ending work in process inventory to the units completed and transferred out. This is the average weighted method of finding the equivalent units.</em>

<em>As only conversion is required we found out the conversion units only.</em>

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