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What should an artisan do first when raw material prices suddenly rise in handicrafts?

Answer and explanation

Correct answer: Assess cost, alternative materials and new pricing

The direct answer is A: the artisan should assess costs, possible alternative materials, and a new selling price. A sudden raw-material increase changes the production cost, so the old price may no longer cover expenses. Step by step: calculate the quantity and new cost of material; add labour, transport, tools, and other expenses; compare available substitutes without harming quality; then set a fair price that covers cost and a reasonable return. Option A is correct because it uses planned cost management. B is wrong because selling blindly at a loss can weaken the business. C is wrong because a temporary price rise does not require closing forever. D is wrong because customer communication should continue and may explain changes honestly. Memory cue: cost changes require cost calculation before pricing.

Related tags

HandicraftsRaw-MaterialCost-ManagementPricing

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