The purchase price of commercial food grinders has a relative importance of 30.Your food grinder has a purchase price rating of 6,and three of your competitors have a rating of 4,3,and 5.What is your relative advantage with regards to the purchase price of your product?
A)30
B)180
C)20
D)60
E)6

Question

Quizplus · Accepted Answer

To calculate relative advantage, we need to multiply the purchase price rating by the relative importance percentage. For our product, that would be 6 x 30 = 180. For our competitors, that would be 4 x 30 = 120, 3 x 30 = 90, and 5 x 30 = 150. So, our relative advantage would be 180/(120+90+150+180) = 0.20 or 20%.

The Purchase Price of Commercial Food Grinders Has a Relative