The Lourdes Corporation Manufactures Fans

question 84

Essay

The Lourdes Corporation manufactures fans. A newly-formed construction company in the area desires to buy up to 300 of their Model CSB3192 this year. Lourdes quoted them a price of $67 which covers all costs plus markon. The construction company has indicated that they will buy all the fans they need in the future from Lourdes Corporation if Lourdes will sell the fans for $60 each. Lourdes Corporation has the capacity to make the 300 fans above their usual production needs. Currently, Lourdes ships all of their production to companies in other parts of the country, but do not usually sell any locally. If the $60 offer covers all costs and allows a small markon, what other things should Lourdes consider before coming to a final decision?

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Definitions:

Classless Society

A society in which no classes exist, and the social hierarchy is flattened such that all individuals have equal access to resources and opportunities.

Free Agency

The ability of an individual, especially in professional sports or employment, to make choices about where to work or whom to contract with without undue restrictions.

Popular Rights

Refers to the rights and freedoms that are considered to be universally entitled to all individuals, often associated with democratic practices and principles.

Whig Party

A political party active in the mid-19th century United States that opposed the policies of the Democratic Party and advocated for a strong federal government.