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Based on the production line expansion plans of the company, the sales department is finalizing long-term sales contracts which will increase sales to Vancouver, Edmonton,
Based on the production line expansion plans of the company, the sales department is finalizing long-term sales contracts which will increase sales to Vancouver, Edmonton, Winnipeg and Montreal. The projected changes to the sales volumes are summarized in the following table:
Vancouver | Edmonton | Winnipeg | Montreal | |
Current Sales ($Mn) | 2.585 | 1.68 | 1.68 | 1.071 |
Future Sales ($Mn) | 4.134 | 2.352 | 2.52 | 1.927 |
Leafs VP-Finance projected that the new sales prices offered to secure the above deals would reduce your allocated annual operation budget by $10,122. This means you will have a tighter budget to manage the transportation of products to these markets.
- Without considering the changes in production and sales, which one(s) of the transportation companies will you sign a contract with for these four markets?
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