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Let's say we are talking to a potential customer for our product and he/she is reluctant...

Let's say we are talking to a potential customer for our product and he/she is reluctant to buy because of the high price. What is the lowest price that WE would accept for our product? What other issues are in our decision to accept this special order?

Answer in your own words, ty

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Answer #1

We can lower our price of product equal to per unit cost it takes to produce . Now cost per product includes production cost , cost of selling and cost of advertising. At this cost we will break even and atleast we won't have any loss.

We would have lower our prices to breakven point because the company wanted to set its product first in the market , create new potential buyers , create new demand in the market . That's why companies come with promotions during the early stage of product

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