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Pecos Printers Inc. Custom Essay

    This paper considers the concepts of contribution margin, which can be applied in order to keep a product’s price. It also evaluates the decision made by Paul Pecos to accept only those offers which offer $300 or more for each unit. The paper includes a comparison of income statements in both the condition; when the decision was applied, and when the decision did not apply. Accounting Pecos Printers needs to keep a price per printer of less than $400 in order to aging competitive advantage in the industry. The standard mark up in the industry is 50%, therefore, in order to attract more and more customers. The product by Pecos Printers is desirable because of its features therefore there is no reason for customers to ignore this offer.