d$.$ Discuss the impact that other factors might have. For example, would increasing the quare

ventory increase costs? Would a salary cut affect employee morale? Would decreased monef

sales? Would decreased store deliveries decrease customer satisfaction? What other of

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Communication Activity

CT$5\mathrm{.}7$ The following situation is presented in chronological order.

Aikan decides to buy a surfboard.

He calls Surfing Hawaii Co$.$ to inquire about their surfboards.

Two days later, he requests Surfing Hawaii Co$.$ to make him a surfboard.

Three days later, Surfing Hawaii Co$.$ sends him a purchase order to fill out.

He sends back the purchase order.

Surfing Hawaii Co$.$ receives the completed purchase order.

Surfing Hawaii Co$.$ completes the surfboard.

Aikan picks up the surfboard.

Surfing Hawaii Co$.$ bills Aikan.

Surfing Hawaii Co$.$ receives payment from Aikan.

Instructions

In a memo to the president of Surfing Hawaii Co$.,$ answer the following questions.

a$.$ When should Surfing Hawaii Co$.$ record the sale?

b$.$ Suppose that with his purchase order, Aikan is required to make a down payment. Would that

change your answer to part $($a$)?$