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If you look at the calculations, even if he would have sold the 700 units at $290 he would have still been making on average $301.23 per unit with the previous orders for that year included. He could have allowed the order to go through and only placed employee on probation. One other thing I would recommend is that he takes in as many orders he thinks his company can produce thus making a hefty net profit in the end...

One other thing I would recommend is that he takes in as many orders he thinks his company can produce thus making a hefty net profit in the end.

Note: In my opinion, I feel that if he had taken the offer of selling the 700 units at $290 that Mrs. Goodperson received, he would see a higher contribution margin...

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