Midwest Office Products was underestimating the profitability of each order based on the true expenses of both the delivery mechanism (freight vs. truck delivery) and late payments while using the "standard method" (interest of 1 percent per month). As a result, certain orders (such as # 2 above) appear successful until you find they paid late and the goods were delivered at a high cost ($300). This consumed the entire deal's margin, leaving no room for profit.