Discussion – Week 3.docx - Discussion Week 3 Exercise 4-1...

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Discussion – Week 3Exercise 4-1John Diaz is the president of Pacific Refrigeration.The company has 2,000 employees andmanufactures and sells a variety of refrigeration units for commercial use.Recently, thecompany experience large losses due to a downturn in the economy and a subsequent declinein sales.John thinks the losses were particularly large because his company has too many fixedcosts.a.Expand on John’s thought.How are the large losses related to fixed costs?
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Term
Fall
Professor
NANCYSHOEMAKE

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