2. Refer to the original data. The presidents brother-in-law has considered making himself a patio set and has priced the necessary materials at a building supply store. The brother-in-law has asked the president if he could purchase a patio set from the Darrian Company at cost, and the president agreed to let him do so.

1. Would you expect any disagreement between the two men over the price the brother-in-law should pay? Explain. What price does the president probably have in mind? The brother-in-law?
2. Because the company is operating at full capacity, what cost term might be used as justification for the president to charge the full, regular price to the brother-in-law and still be selling at cost?