Examine the reasons service companies are more sensitive to labor and

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From the first e-activity, the article indicates approximately 90% of the companies in the study were sensitive to the variances in material prices. Examine the causes of material price variances and the potential impact on pricing decisions.

Examine the reasons service companies are more sensitive to labor and price variances, as compared to material price variances, in the industrial sector and why managing these variances is essential to sustaining profitability.

http://www.imanet.org/PDFs/Public/MAQ/2010_Q1/maq_winter2010_rao_revised.pdf.