Alex Is the Manager of a Division of a Paper

question 53

Essay

Alex is the manager of a division of a paper firm that produces copier paper and sells it on the wholesale market.His firm's output represents about 1.5% of total copier paper sales.The wholesale price of copier paper is $3.95 per standard package.His plant engineers report that,at his projected volume,labor costs are $1.00 per package,material costs are $2.00 per package,and other average fixed costs are about $0.75.What price should he charge for his firm's product?

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Definitions:

Consequential Damages

Refers to losses or injuries that do not flow directly and immediately from an act, but result indirectly from the act.

Breach

The act of violating a law, promise, agreement, or barrier.

Special Circumstances

Situations that are exceptional, and may require different treatment or exceptions to standard rules or policies.

Incidental Beneficiary

A third party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions.