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What other reasons might motivate to sell at a price

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Reference no: EM132627259

Question 1: Specific Water Company produces water bottles. It has been asked by a large retail shop to supply water bottles which would be libelled in the name of the retail shop. The retail shop would pay Specific Water Company a price of $25 per bottle. However, its regular price is $26. If Specific Water Company agrees to sell water bottles to the retail shop at a price of $25, what type of relevant costing decision would you call this? Is it possible to make net benefit (earnings) by selling at a price lower than the regular price? What other reasons might motivate to sell at a price below regular price?

Reference no: EM132627259

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