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Business, 06.07.2021 17:20 lulbbyz

Suppose you are advising a regional commercial printer, who is negotiating with a national magazine. For them, using a regional printer reduces shipping costs, but to take on the work, the regional printer must purchase a $12 million rotogravure printing press, which has no resale value. Assume $8 is the average cost of printing one million copies per year over a two year period. Now suppose that the magazine accepts your offer, and immediately hands you a purchase order for $8,000,000, for the first-year production. Do you accept the purchase order

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