Module 5 Case Assingment ACC202

Module 5 Case Assingment ACC202 - Module 5 Case Assignment...

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Module 5 Case Assignment ACC 202 Dr. Glenn Tenney
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Paul’s pricing decision may have been based upon a strategic analysis or a few variables that may impact the potential for profits. These variables could be future costs or the current dealing with the actual current costs. Keeping within the industry standards of marking up prices, Paul had a task to keep printer prices below $400 dollars per printer. His decision to his staff was to accept offers over $300 dollar or more and reject anything under the asking price. This rule was based upon the actual cost it takes to manufacture their printers, which is $290 dollars total per unit. This rule gives his staff the ability to negotiate pricing which may generate opportunity cost for the manufacturing company. Depending upon the three salesman and their accepted offers there will be relevance because each may accept a different offer from the distributors. Paul Pecos’ reaction was justifiable because the new distributor was offering 700 units
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This note was uploaded on 10/26/2011 for the course ACC 202 taught by Professor Choi during the Fall '11 term at Trident Technical College.

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Module 5 Case Assingment ACC202 - Module 5 Case Assignment...

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