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Currently, Halperin Electrical Sells Directly to Thousands of Industrial Customers

question 8

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Currently, Halperin Electrical sells directly to thousands of industrial customers. Halperin could reduce the number of exchange relationships by including wholesalers in its channel of distribution.

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Definitions:

Unrealized Profits

Gains that have been achieved on paper from an investment but have not yet been realized through a sale or transaction.

Intercompany Sales

Transactions of goods or services between subsidiaries within the same corporate group, not affecting consolidated revenue.

Mark-Up

The amount added to the cost price of goods to cover overhead and profit in setting the selling price.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without reflecting the investor's share of the investee's profits or losses until dividends are received.

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