Research Paper on:
Paul Pecos Case Study

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been based on a projected cost of $250 per unit, including the fixed costs with the assumed production level of 10,000 units to be sold in a year.  This is a firm rule and as such we may argue that it is based on some very careful financial planning that is considering all costs and the level of  profit that needs to be made. However, it is also based on a cost per unit that includes fixed costs. As the number of units sold increase, as long as  they remain within the current total capacity level, the proportion of fixed costs for each unit produced will decrease as the same level of costs are divided over a greater  number of units (Chadwick, 2001). If we consider the decision we may also argue that it is short sighted. There are economies of scale that could be realised if  lower process were accepted if the order were of sufficient size. If we look at the background material there is also a market where there are decreasing prices, as such  it is possible that the market may not be seen to grow. The costs are also kept low, but these may also be too high, the printers have a much  higher than average lifetime when measured in the number of pages to be printed. However this may also be used to justify a higher price. Question 2 If we  look at the reaction of Paul Pecos to an order placed through Ms Goodperson this was an extreme reaction. An order was accepted by Ms Goodperson for 700 units at  $290 per unit, this was below the level so there was an immediate rejection and Ms Goodperson was fired. If we consider this there was the covering of al