When Order Processing Costs Do Not Vary Based on the Size

question 15

True/False

When order processing costs do not vary based on the size of the order, a customer who makes large, infrequent orders is generally more profitable than a customer who makes small, more frequent orders, for the same quantity and price.

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Definitions:

Contractual Relationship

A legally binding agreement between two or more parties, creating mutual obligations enforceable by law.

Unjust Enrichment

A windfall that one party to a contract stands to make at the expense of the other.

Collateral Contract

A separate contractual obligation that can stand alone, independent of the written contract.

Inferred Trust

A trust implied by law to work out justice between the parties, based on certain circumstances or conduct, as opposed to being established by explicit words.