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Get access to the detailed solutions to the previous years questions asked in IIFT exam
Let's calculate the different WAC types during April 2014 - March 2015 and tabulate it as follows
Sales Volatility can be calculated by the formula (Maximum Monthly Sales - Minimum Monthly sales )/ Average Monthly sales
1⁄2 Ton = 609-207/352.128 = 1.14
1 Ton =459-153/281.37 = 1.09
11⁄2 Ton = 439-241/338.03 = 0.59
2 Ton = 419-253/ 329.138 = 0.5
Among the different WAC types 2 Ton has the lowest Sales volatility.
Hence D is the correct answer