One of ACMEs major products, the N20 Switching device, is supplied to networking equipment manufacturers and installers who use it as part of their overall service and product portfolio offerings. This product has a high but highly variable demand and ACME has a difficult time keeping up with it. In fact, the product is on back order for some major customers. A key aspect of this product is that it has to be customized for the different customers, so once the product is manufactured, it cannot be sold to another customer. ACME has just signed a Pay Back Contract with BBCO, a major global networking company, for the sale of this Switching product. This, in effect, means that

Group of answer choices

ACME provides a direct incentive in the form of a rebate to BBCO to increase the use of the product in their projects and sales for any item used and sold above a certain quantity

BBCO requires ACME to hold inventory for BBCO, to be pulled when BBCO needs

BBCO shares some of the production cost with Acme, in return for a discount on the price

BBCO has a contract with ACME for a certain amount of product. BBCO gets a price discount but has to pay ACME an agreed-on price for units that ACME produces for BBCO but which BBCO does not take