18.9

purchase the other 70 percent. Jorell incurs the following costs of production per labeler: accounts. They call on the stores and incur salary and mileage expenses of approximately $40,500 each. Delivery costs vary from store to store, averaging $0.58 per unit. Jorell charges the chain store $17.20 per labeler and the independent office supply stores $20.60 per labeler. Required: Is Jorell's pricing policy supported by cost differences in serving the two different classes of customer? Support your answer with relevant calculations. (Round unit costs to the nearest cent.) , the cost differential of ? justify the price differential of $3.40