Suppose that you go for reallocation of the contract volumes between the three current suppliers. How would
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Suppose that you go for reallocation of the contract volumes between the three current suppliers. How would you do that?
a Answer your question by first calculating the break-even volumes of each supplier.
b What additional volume would you give to Newark; what would be left for the other two suppliers?
c Calculate the financial consequences for each of the three suppliers.
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