An Advertiser Signed an Annual Contract to Purchase 3,000 Column

question 1

Short Answer

An advertiser signed an annual contract to purchase 3,000 column inches @ $4.25 per column inch, subject to an end-of-year adjustment. After a year, the advertiser had actually used 2,500. If the paper charges according to the following scale, determine what, if anything, should be done to the advertiser's account.
$$\begin{array} { | l | c | c | } \hline { \text { Rate } } & \text { Minimum Annual Use (Column Inches) } & \text { Price per Column Inch } \\\hline \text { Open } & - - & \$ 5.35 \\\hline \text { Variable } & 1,000 & \$ 5.00 \\ & 2,000 & \$ 4.65 \\ & 3,000 & \$ 4.25 \\& 4,000 & \$ 3.75 \\\hline\end{array}$$

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