One of your major competitors declared bankruptcy. They had severe cash flow problems and many of their contracts were running at a loss. Your Sales Director informs you your company was offered two of your bankrupt competitor's contracts. They are yours as long as your organization accepts the work at the current contract prices and terms of your bankrupt competitor. The value of the work being offered is $10 million. This would represent 24 per cent of your current sales. The Sales Director wants your counsel on a plausible course of action in the current market conditions for the potential clients, prior to him talking to them. Write a report for your Sale Director that summarizes your suggestions. In this report, include the following information:

A) State the course of action you suggest the Sales Director give to the two potential clients.

B) Explain the foundation and reasons for your suggested action.