A telephone company established discounts for off-peak use of telephone services. A discount of 35 percent is
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A telephone company established discounts for off-peak use of telephone services. A discount of 35 percent is offered for calls placed in the evenings during the week, and a discount of 60 percent is offered for late-night and weekend calls. Since the telephone company would probably not be profit- able if these discounts were offered all the time, explain what cost considera- tions may have entered into management's decision to offer the discounts.
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