What is the bottom line in negotiations with the telecom

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suppose you work for an original equipment manufacturer (OEM) who makes component pieces for a telecommunication company. The telecom company asks you for a price quote for 2,000,000 units that will require a $1,000,000 investment with marginal costs of $1. What is your bottom line in negotiations with the telecom? Suppose you agree on a price slightly above your bottom line. Immediately after quoting this price to the telecom company, you receive a faxed order for one million units. What should you do?

Reference no: EM13232807

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